Please follow the steps below to properly set up the deduction and benefit required to record the Affordable Care Act in box 12 DD
  1. Create the deduction in configuration
    • Mark the box 'Include amounts for this deduction in W-2 Box'
    • Select 'Box 12' in the drop-down
    • For the Code drop-down; select 'DD - Cost of employer-sponsored health coverage'
    • Select the tax settings as needed based on your coverageFor the GL distribution it is advised that you have created a health care coverage expense account and this will be the account or account code used.
       
  2. Create the Employer Contribution Benefit
    • Mark the box 'Include amounts for this deduction in W-2 Box'
    • Select 'Box 12' in the dropdown
    • For the Code dropdown; select 'DD - Cost of employer-sponsored health coverage'
    • For the GL distribution tab it is advised to create a new 'wash' account and set that account as both the debit and credit so it will post on the same day and no additional expense will be accounted for.
       
  3. Use the Create Group Assignments wizard to add the deductions and benefits to the employee records.