Payroll Services

Employer Cost of Medical

New on Form W-2 for tax year 2012 was the employer-cost of sponsored health care insurance.  The Patient Protection & Affordable Care Act of 2010 requires employers to provide the cost of medical insurance coverage to increase consumer awareness as to the true cost of medical insurance.  The amount shown in Box 12 Code DD is NOT TAXABLE and is provided as information only as required by the Internal Revenue Service.  Even though the Act describes reporting as “employer-cost”, the Internal Revenue Service expanded this definition to include reporting both employee and employer costs.

Many of our benefit-eligible employees know that the medical insurance rates that are withheld from our paychecks are based on an average rate provided by the Public Employees Benefit Board (PEBB).  Current premium rates are posted at this link:

http://www.wsu.edu/payroll/deptpay/healthinsTable_2013.htm

New rates started on the December second half pay cycle for January coverage.  What is very exciting about this new reporting requirement is that PEBB has had to provide the actual cost of medical and dental coverage per insurance carrier.  The actual cost may be higher than the average pay cycle cost.   Box 12 Code DD represents the actual cost of medical and dental coverage and is not found on your earnings statements or pay stubs.  A reminder that the amount at Code DD is not taxable and is provided as information only. Please see additional information below. Contact Payroll Services at payroll@wsu.edu with any W-2 questions.  

The chart below shows by employee category what is listed in Box 12 Code DD:

W-2 FORM MEDICAL / DENTAL PLAN COVERAGE

Student Medical Plans

Amount Reported on W-2 Form

    Undergraduate

  • Amount billed for coverage if you were on WSU payroll any time in 2013.

 

    Graduate Student on  Assistantship

  • Amount billed for coverage.
  • Amount guaranteed by WSU.
  • Amount billed for dependent coverage.

 

Employees on Federal Medical Plans

  • YTD employee paid
  • YTD WSU paid

(Both amounts per pay cycle were listed on earnings statements)

PEBB Medical Plans

  • YTD employee paid

(Amount per pay cycle as listed on pay cycle earnings statement.)

  • Self-paid (employee) amounts if paid to WSU
  • If health coverage was waived, the cost reported is for dental coverage.
  • Fair Market Value for medical premiums if domestic partnership.
  • Cost of dental coverage paid by WSU based on insurance carrier and tier of coverage (self, spouse, children, full family). Rate amounts provided by Health Care Authority.
  • Cost of medical coverage paid for by WSU based on insurance carrier and tier of coverage (self, spouse, children, full family). Rate amounts provided by Health Care Authority.

 

 

 
 
Payroll Services, PO Box 641024, Washington State University, Pullman WA 99164-1024, 509-335-9575, Contact Us
Counter