Please note that .Net 4.5 cannot be installed on Windows XP or lower.
If you are interested in learning more about our government accounting software, Pro Fund Accounting, please visit http://www.profundaccounting.com.

Changing the Health Insurance Deduction Codes

• Under Payroll/Payroll Constants, open Deduction Types and locate your health care deduction code(s)
• Edit them to remove the information in the W2 Info box and change the Tax Code box from “Box 14” to DD
• On the Parameter Titles page, in Parameter Title 5, enter “CMP AMT” (stands for Company Amount); this is to hold the amount the employer pays for the employee’s health care

Reflecting the new Deduction Code Requirements in Employee Maintenance

• In Employee Maintenance, go to the Deductions tab and in the Select Code column, locate the deduction code for the health care deduction(s) that you made in Deduction Maintenance and click it.
• To “catch up the year” to reflect the amounts paid on the employee’s behalf for the payrolls already paid during 2013, click EDIT, then enter the TOTAL YTD HEALTH CARE paid by the employer in the CMP AMT box before running your next payroll.
• After the payroll is finished, repeat step 1 in this section, then enter the normal amount paid on the employee’s behalf. If the employee’s status changes during the year, change the amount in this box to the new amount the employer pays.

What is printed on the W-2s
The Health Care Cost and the Tax Code, DD, will be printed in one of the “Box 12” boxes (there are 4 boxes available and, usually, deferred compensation or retirement is printed in the boxes). The amount printed will be a combination of the amounts your employees paid toward their health insurance and the amounts you, as the employer, paid. These two figures, added together, should equal the total amount paid to the insurance company(ies) for health insurance during the year.

Health Insurance Paid in-full by Employer; no health insurance deduction code
After calculating your W-2s for 2013, you will need to edit each W-2 to reflect the amount you, as the employer, paid for each employee’s health insurance.

Explain to your Employees what this is all about
The amount reported does not affect tax liability, as the value of the employer excludible contribution to health coverage continues to be excludible from an employee’s income, and it is not taxable. This reporting is for informational purposes only, to show employees the value of their health care benefits.

You can learn more about Pro Fund Accounting here. If you found this post helpful, please feel free to leave a comment below.

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This Budget Package will help Road Commissions keep tight control of the limited financial resources they have. Dan Medina, Director of Maintenance at the Saginaw County Road Commission commented, “This user-friendly spreadsheet provides multiple options from start to finish in creating and monitoring an annual County Road Maintenance Budget. This spreadsheet allows you to compare the history for 3 or more years to see what your final expenditures were in previous years by line item. Once your budget is developed you can monitor it by comparing monthly expenditures to what you’ve historically spent during the same time period.”

To learn more about this new, extensive Budget Package, visit our product page at http://www.profundaccounting.com.

For further information, contact George Loescher at president@cogitateinc.com. Cogitate, Incorporated is rated A+ by the Better Business Bureau and has been in business since 1966.

You can find out more about Cogitate Incorporated and the products we offer at www.cogitateinc.com.

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