How to Report Employer Health Insurance on W-2s in QuickBooks?

Users can report employer health insurance either manually or by calling customer care. Health insurance is reported on W-2 forms due to the pre-tax benefits, making it necessary for record-keeping.

You must report health insurance on W-2 forms if your company reimburses employees, has fewer employees, or uses QSEHRA. It is also required if your company is in Vermont or files more than 250 W-2 forms annually.

Before reporting health insurance on your W-2, choose your payroll service to begin. In this article, you will get the steps to report health insurance on W-2 forms in QuickBooks Online (QBO) and QuickBooks Desktop (QBDT).

How to Report Employer Health Insurance on W-2s in QuickBooks Online Payroll

• Select “Taxes,” then “Payroll Taxes.”
• Choose “Filings,” then “Resources.”
• Click “W-2s.”
• From “Employee W-2s,” select “Edit Box 12/13 on W-2 Copies B, C, & 2 (employee).“
• Enter the amount for each employee:
  • Use Box 12DD for the coverage you provide.
  • Use Box 12FF for reimbursements.
• Select “Submit.”

Note:
1. You can add health insurance amounts at any time up until January 1 if automatic tax payments and filings are enabled.
2. You can add health insurance amounts anytime during the year if automatic tax payments and filings are disabled.

How to Report Employer Health Insurance on W-2s in QuickBooks Desktop Payroll?

Step 1: Create a Company Contribution Payroll Item

1. Select “List,” then “Payroll Item list.”
2. Click “New Payroll Item.”
3. Choose “Custom Setup,” then click “Next.”
4. Select “Company Contribution,” then click “Next.”
5. Name the payroll item (e.g., “Reportable Health Coverage Cost“), then click “Next.”
6. From the “Liability account” drop-down, select “Add New.”
7. Choose “Other Expense” and name the new account (e.g., “Reportable Health Coverage“). Click “Save & Close.”
8. From the “Expense account” drop-down, select the newly created account. Click “Next.”
   • Note: Keeping the liability and expense accounts the same will let you track healthcare costs without affecting financial reports. Select “Yes” on the warning.
9. From the “Tax tracking type” drop-down, select “Health Coverage Cost.”
10. Click “Next” three times, then select “Finish.”

Step 2: Report Amount on Paycheck

1. Add the healthcare company contribution to your employees’ paychecks.
2. Run payroll before the year ends.

Reporting employer health insurance on W-2s in QuickBooks is essential for tax purposes and compliance. By following the detailed steps for both QuickBooks Online and Desktop, employers can ensure accurate reporting and avoid potential issues.

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