2012 W-2 Reporting of Med Deductions

We plan on adding the appropriate deductions to the deduction group (pr02.2) and then listing the group on the PR27 box 14 form.

Margie, thanks for your response.  Did you need to do any custom programming for your pr02.2 amount.  We have an employee amount that needs to be increased by a certain percentage to reflect the employer cost which is higher. Thanks

No.

We have company deductions set up that reflect the employer cost.

We are doing something similar to what Margie described and started it with the first payroll of the year to track costs throughout.

Margie and Mark:

Once again, I appreciate your feedback.  Currently, we don't store the employer cost, decision made before I was hired. We have a 3rd party administrator who passes back our deduction amount via a pr514 upload file.  Based on your feedback this seems easy enough to remedy.I'm guessing we (our Payroll group) would just set up an employer deduction with the correct parameters  and just feed in the appropriate  employer cost amounts the same way...  Am I on the right track with this?    Tx Julie

Is that how you handle your employee deductions? Do you use the benefits module in Lawson?

We don't use the benefits module for medical deductions.We do use it for DC and DB benefits.  Does it have to be a BN setup?  We load the  PR14 medical deductions at the beginning of the plan year via the pr514. We do changes and stops throughout the year.  I was thinking that we'd work with Payroll on ways to set up an employer deduction (PR05? ) with the appropriate parameters if that is a feasible approach.

It does not have to be a BN setup. I just wanted to make sure you weren't going to have part of your HL deduction come for BN and the other from a straight deduction.

Sounds like a plan. Of course, I am a firm believer in trying it in a test env before loading into production.

Ok, I now have a little more confidence starting with this approach.  Yes  we intend to TEST and TEST and TEST and then get a Payroll blessing to move to production.  Thanks again.

I agree that your plan sounds great. Just one more thing you'll need to look into. Someone one (I'd guess an accountant) is entering the amount you're paying as an expense into your GL. When you create the ER deductions, the amounts will be posted to your GL like all other payroll transactions. If you don't stop the current procedure, you will have the ER costs double posted to your GL.

Hope that makes sense.

Question...
Mark and Margie- You indicated that you added the deductions to PR02.2 and started with the first payroll of the year. We've had the deduction code set up for the employer portion but haven't added it to PR02.2...until now. Forgive my ignorance, but does that mean we will have missed the deductions from the first six months of the year in the total amount?

Also, since the IRS has indicated both the employer and employee costs should be reported, how are you also capturing the employee cost? Are you simply adding the employee deductions codes into that deduction group?

Thanks.

You can add the deduction codes to that group any time prior to running your W-2s and the amounts will be picked up for the W-2s.  You can add both employee and employer deduction codes to the form.

Does anyone have an employer premium setup for EAP? Our EAP has always been considered an ERISA plan so we have had to offer COBRA for it, but we never set up an employer deduction on the benefit.