December 20, 2011

FMS Clients:

Please see the article below regarding W2 requirements for 2012 (to be issued in January 2013).  This requirement will have an impact for some employers as soon as the first payroll issued in January 2012.

The first step is to determine whether or not you are required to report group insurance health coverage on your W-2s.  Generally speaking if your company issues > 250 W-2 forms at the end of 2011 then you are required to include this information on your 2012 W-2 forms.

The group health insurance cost per associate is information which each retailer must obtain.  This is not information to which FMS has access.  You will need to work with your health care provider or broker to garner this information.

Depending upon your availability to the coverage cost per associate, there are two avenues within the payroll system for you to handle this new governmental regulation.

First, you can input into a deduction code specifically created for this purpose, the weekly / bi-weekly cost of coverage for each associate.  The potential drawback to this method is that if you have an open enrollment during the calendar year and rates change you will need to change the deduction code at the time of the open enrollment.  If you choose this course of action, please contact your accountant or the FMS payroll department so they can set up the applicable code for you.

The second method is to approach your health care provider / broker and determine if you can obtain a listing at the end of 2012 (by December 15, 2012) which provides the total cost of health coverage by employee for the calendar year 2012.  If this information is obtainable from your carrier, then you can simply input the data one time at year end and the information will be included on the W2.  We are hearing some providers will not be able to provide this information so it is important to check now with your carrier!  If they cannot, then you will need to use the first method (or a derivation there of).

Attached please find FMS release notes for the appropriate steps to take to begin working through this government compliance issue.  FMS will provide additional training or educational information possible as we move forward.  It is important that you contact your group health insurance provider or broker if you provide health care coverage to your employees and begin gathering information and data.

FMS will perform a webinar(s) on this topic at a later date, please keep an eye out for an email invitation to this event. 

Please do not hesitate to contact your accountant, client manager, or me should you have questions or concerns regarding this compliance regulation.

Happy holidays,

Jon Cline
VP Client Support
877-435-9400 X 1414
jonc@fmssolutions.com