Show Me The Money: An Easier Way to Show the Value of Your Employer Health Care Plan

Written By: John Hoyt of Technology Management Concepts

from December 19, 2012

The Patient Protection and Affordable Care Act (PPACA) requires employers to report the value of employer provided health care plans. This includes the premium portion paid by the employer as well as the employee. Compliance with this law can easily be met using Microsoft Dynamics GP Human Resources and Payroll modules. It requires company health insurance plans to be set up as a benefit for the employer paid portion and as a deduction for the employee paid portion.

In Microsoft Dynamics GP, setup the employer paid portion of the health care premium. If using the Human Resources module, a company’s procedures might have the benefit setup start there first. After that, the steps follow the normal payroll setup. Access the Payroll Benefit Setup window from the Setup section of the Payroll Center page. When creating the new code (or modifying the old code), enter data in the W-2 Box and Label fields. Then, roll this change down to all employees already using the benefit code.

Next, setup the employee paid portion of the health care premium. This can be done by setting up a deduction code. Access the Payroll Deduction Setup window under the Setup section of the Payroll Center page. Like the benefit setup, when creating the new code (or modifying the old code), enter data in the W-2 Box and Label fields. Then, roll this change down to all employees already using the deduction code.

These settings will take effect at the time they are entered. When W-2s are generated, all amounts collected by the codes for the year will be in this box and label. The code can be entered just before creating the year-end wage file and generating W-2s or at any time before.

Compliance with The Patient Protection and Affordable Care Act (PPACA) is crucial for companies of all sizes. With Microsoft Dynamics GP, compliance is easy to set-up and easy to manage.