Drake Accounting – Reporting Employer-Sponsored Health Coverage on Form W-2

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Article #: 16365


According to the Form W-2 instructions:

“Reporting the cost of group health insurance coverage. You must report the cost of employer-sponsored health coverage in box 12 using code DD. However, transitional relief applies to certain employers and certain types of plans. For more information, see Box 12 – codes for Code DD – Cost of employer-sponsored health coverage” [of the W-2 instructions].

To report employer-sponsored health insurance coverage in DAS, set it up as a benefit at Employees > Deductions & Benefits > Benefits tab. Be sure to select:

  • Not Taxed – Not Applied to Gross or Net Pay from the Taxing and Income Options droplist, and

  • DD from the W-2 Box 12 droplist.