Sage HRMS

Frequently Asked Questions

• What is PPACA?
• I have less than 150 employees. Am I required to report the employer provided health care cost?
• How do I know what the correct amounts for Box 12 Code DD are if they have not been calculating throughout the year?
• Where in Sage HRMS can I verify the amounts that have been calculated throughout the year?
• How do I correct the amounts in Sage HRMS if they have not been set up correctly throughout the year?
• If I have not had my deduction and benefit codes set up for 2012 how do I set them up to ensure these amounts are correctly calculating in 2013?
• Does changing the W-2 reporting selection on the employee paid benefit to Employer Provided Health Care populate YTD amounts on the W-2s?
• When did Sage HRMS implement functionality for PPACA?
• If I edit the Form W-2 Code DD in Aatrix, do I also have to edit Form W-3?
• Who can I contact to make sure my setup is correct for PPACA?

Q: What is PPACA?

A: The Patient Protection and Affordable Care Act (PPACA) in conjunction with the amendments made to the Healthcare and Reconciliation Act of 2010 (together, the Healthcare Act), have significant employment tax and information reporting implications.

The requirements of the Healthcare Act are being phased in over a period of eight years, with limited provisions, such as the change in qualified dependents for medical care expenses, effective in 2010. Under the PPACA legislation, with respect to reporting the cost of coverage under an employer-sponsored group health plan on Form W-2 this requirement is optional for all employers in 2011. IRS Notice 2011-28 provided further relief for smaller employers filing fewer than 250 W-2 forms (in the prior year) by making the reporting requirement optional for them at least for 2012 and continuing this optional treatment for smaller employers until further guidance is issued.

Q: I have less than 150 employees. Am I required to report the employer provided health care cost?

A: IRS Notice 2011-28 provides relief for smaller employers filing fewer than 250 W-2 forms (in the prior year) by making the reporting requirement optional for 2012 and continuing this optional treatment for smaller employers until further guidance is issued.

Q: How do I know what the correct amounts for Box 12 Code DD are if they have not been calculating throughout the year?

A: Contact your benefit company and ask them for a report of your employee and employer amounts.

Q: Where in Sage HRMS can I verify the amounts that have been calculated throughout the year?

A: This information can be found on the Earnings/Deductions Summary standard report. Not sure where to find this report? Click here.

Q: How do I correct the amounts in Sage HRMS if they have not been set up correctly throughout the year?

A: There are two options to correct this.

1. You can edit transaction history. The directions to do so are included in this TechFlash here.
2. You can edit the amounts directly on the W-2s through Aatrix. Documentation on how to do so can be found here.

Q: If I have not had my deduction and benefit codes set up for 2012 how do I set them up to ensure these amounts are correctly calculating in 2013?

A: Step by step directions on how to set up these are included in our Sage HRMS PPACA white paper which you can locate here.

Q: Does changing the W-2 reporting selection on the employee paid benefit to Employer Provided Health Care populate YTD amounts on the W-2s?

A: Yes, but only the employee portion. The employer portion would need to have been set up as a benefit to have calculated correctly throughout the year to be reported correctly on the W-2s.

Q: When did Sage HRMS implement functionality for PPACA?

A: PPACA functionality was included in the Q4 2011 Product Update.

Q: If I edit the Form W-2 Code DD in Aatrix, do I also have to edit Form W-3?

A: The W-3 does not contain any Box 12 information, so no edit is required to this form.

Q: Who can I contact to make sure my setup is correct for PPACA?

A: All you need is active support! Avoid the year end rush and call Customer Support at 1-800-829-0170 Monday – Friday from 8:00 am – 8:00 pm EST. A support representative will be glad to do a live connect to review your setup and answer any questions you may have.