This article will show you how to add employer contributions to Health Insurance to each employee.
Employer Health Care Contributions: All employer/employee health care contributions must be listed on the W-2 in box 12 with code DD. OnPay is ready put that info on the forms for you, but first we need you to make sure you have added that data!
- Contact your Health Insurance provider and request a document listing total employee/employer contributions to healthcare for the current year. Even if the year is not over they should still be able to tell you what the amount is supposed to be for each the employer and employee side for the year.
- Log into OnPay and make sure that you have ran all of the employee contributions through the system as a Section 125 deduction correctly. You can locate the amounts deducted from the employee for the year by viewing the listing in the Year End Adjustments section of the Employee Menu.
- To view the current years deductions, click on the Employee Menu > Year End Adjustments > choose Active from the Employee Status drop down > choose the year you are checking from the Year drop down > and choose Sec 125 from the Override drop down. If the employee contribution is not correct, and you have no more payrolls to run for the year, then you will need to contact us so we can help you get that corrected.
- If the employer contribution found in the Year End Adjustments is not correct, you can put in an override by clicking on the number in the Employer Contribution column, entering the correct amount in the box that appears, and clicking save.
- Keep in mind, the number you enter will totally override all other numbers for the year. So, if the employer contribution was already $1000 in the system, and you override it to $1500, then the amount added to the W-2 will be $1500, and the $1000 will be ignored. If you later remove the $1500 override, then the system will revert back to using the amount previously entered into OnPay unless you add another override.
- The total Employee Contribution and Employer Contribution for each employee found on the Year End Adjustments page will be added together and put on the W-2 in box 12 as Code DD.
Like all other year end change requests, you must enter any employer contributions to healthcare that must be recorded in OnPay by January 11th. Reporting these additions to us after January 11th could delay processing of your W-2s and cause you to incur additional fees for any refiling we must complete.