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Adrian_A
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I appreciate you for getting back to us, beckibrack.

 

I agree with you. The moment you change the tax tracking type, the reporting will be incorrect. To reflect the code DD on box 12 on the W2 form, you'll have to create a payroll item and select Health Coverage Cost as the Tax Tracking Type. 

 

Here's how:

 

  1. From the Lists menu, select Payroll Item List.
  2. Click the drop-down arrow beside Payroll Item, then select New.
  3. Select Custom Setup under Select setup method.
  4. Click New.
  5. On the Payroll item type page, select Company Contribution. Click Next.
  6. Enter the item name under Name used in paychecks and payroll reports. Select Next.
  7. Select the agency for company-paid liability, then click Next.
  8. Select Health Coverage Cost under Tax Tracking Type.
  9. Click Next, then Finish.

 

Afterward, create a payroll and add the item created under Other Payroll Items. The payroll item will now automatically reflect on box 12 in the W2 Form with the DD code.

 

If you don't have the payroll item set up previously, you may need to create a liability adjustment and then select the item created.

 

Furthermore, you can check this article on how you can file W2 forms: File your W2 forms.

 

You can always post in the forum if you have other tax-related concerns.

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