Learn how to report the cost of health coverage on Form W-2 .

The Health Coverage reporting requirements are a result of the Affordable Care Act (enacted in March 2010.) It requires employers who file 250 or more W-2 forms. If this is you, you must report the cost of coverage under an employer-sponsored group health plan on employees' Form W-2.

The value of the employer's excludable contribution to health coverage continues to be excludable from an employee's income. It is not taxable. We'll show you how to report it on Form W-2.

Report employer-sponsored health coverage (Form W-2)

A few things to know before following the steps to report health coverage.

  •  You'll see 50 employees appear per page. Select Save & Next to go to the next page.
  • The total amount that gets entered in is the combined total of both the employee and employer portions.
  • If you don't need to report health coverage for an employee, leave the field blank.
  • If you need to remove a previously saved dollar amount:
    1. Enter 0
    2. Select Save & Next. The box 12 code DD item will be completely removed from the employee's W-2 form.

Intuit Online Payroll

  1. Select Taxes & Forms. Then select Taxes.
  2. Select Annual Forms.
  3. Select W-2, Copies B,C & 2.
  4. On the Printable Employee Copies: Form W-2 page, select the Health Coverage link.
  5. If this is the first time you've visited this page, select go here.
  6. If you need to make changes, select Need to update your Health Coverage amounts in box 12?.
  7. Enter the dollar amount for each employee to appear on Form W-2, box 12 code DD.

QuickBooks Online Payroll

  1. Select Taxes & Forms. Then select Taxes.
  2. Select Annual Forms.
  3. Select W-2, Copies B,C & 2.
  4. On the Printable Employee Copies: Form W-2 page, select the Health Coverage link.
  5. If this is the first time you've visited this page, select go here.
  6. If you need to make changes, select Need to update your Health Coverage amounts in box 12?
  7. Enter the dollar amount for each employee to appear on Form W-2, box 12 code DD.
Note: If you have Intuit Full Service Online Payroll or QuickBooks Online Full Service Payroll, please call our customer support team at 1-866-729-4662 to have your health coverage reporting entered into your account.

Reporting requirements: Form W-2, Box 12 (DD)

Whether you're required to report or choose to report, you must report the total costs of all applicable employer-sponsored coverage. It's defined as "coverage under a group health plan that the employer makes available to the employee that is nontaxable to the employee (or that would be nontaxable if the coverage were employer-provided)."

You'll want to include information, such as: 

  • Major medical
  • Health flexible spending arrangement (FSA, company-subsidised portion only)
  • Hospital indemnity (pre-tax employer or employer paid)
  • EAP, if included in COBRA
  • Onsite medical clinic coverage, if included in COBRA
  • Wellness programs, if included in COBRA
  • Domestic partner coverage

Certain types of coverage are specifically excluded by the Affordable Care Act and the IRS. Other types of coverage are optional to report. For a complete list, see the chart provided on the IRS: Form W-2 Reporting of Employer-Sponsored Health Coverage website.

Gather employee information

Start with your Intuit Online Payroll Deductions and Contributions report for the 2018 tax year. This report includes both employer and employee contributions for different group plans.

However, it probably doesn't include everything that is required to be reported. So you may need to get statements or reports from your group plans.

Be sure to review the chart provided on the IRS: Form W-2 Reporting of Employer-Sponsored Health Coverage website to make sure you're including the required (and optional) info only.