At the end of each calendar year, your company must report the health benefits provided to employees for tax purposes. PeopleKeep makes this process easier by providing the necessary information to include on each employee's W-2 form. Below are answers to frequently asked questions to help you understand our W-2 report.
Important: This guide is designed to assist with the W-2 reporting process. Always verify the information with a tax expert before submitting your W-2 forms to ensure accuracy.
Where to Find the W-2 Reporting Information (Available December 31st)
- Go to your Company Dashboard.
- Click the Reports tab on the left-hand side.
- Select Download next to the W-2 Amounts for the relevant year.
Who Can Use PeopleKeep's W-2 Report?
This report is for internal use only by admins. It is not shared with any third parties.
How Do I Use PeopleKeep’s Report to Complete the W-2 Form?
For a step-by-step guide on how to fill out the W-2 form using PeopleKeep’s report, please refer to our helpful guide: How to Complete W-2 Forms
What Amounts Are Reported on Employees' W-2 Forms?
You will report the total annual QSEHRA allowance offered (not reimbursed) and any taxable amounts reimbursed during the current year. These details are available in your W-2 report.
How Is This Information Generated?
The report includes both tax-free and taxable amounts, based on your employee’s minimum essential coverage (MEC) status. This is a live report, and employees can update their information until December 31st for the current year via their dashboard.
Why Are There Taxable or Tax-Advantaged Amounts Listed for an Employee?
The QSEHRA is a tax-free benefit for employees who have minimum essential coverage (MEC). If an employee is reimbursed without having MEC, the reimbursements are taxable. The report includes both tax-free and taxable amounts to ensure the correct taxes are applied.
What Happens to Reimbursements Recorded After December 31st for the Current Year’s Allowance?
The report closes out reimbursements for the current year on December 31st. If reimbursements for the current year’s allowance are scheduled after December 31st (during a runout period), any taxable amounts will appear in the following year’s W-2 report. Tax-free amounts are not reported again, as they are included in the total annual allowance for the current year.
Can the Amounts Reported Be Changed?
Yes, this is a live report, and employees can update their MEC information before December 31st for the current year. Employees can use the following guide to update their MEC status: How to Update Your Minimum Essential Coverage (MEC) Status
Can PeopleKeep Change Employee Amounts?
No, PeopleKeep cannot make changes to employee amounts. Only active employees can update their MEC status from their Tax Savings page until December 31st. Updates cannot be made for previous years.
Why Are No Values Listed for an Employee?
If an invited employee never activated their profile to submit their information, no information will be generated from their dashboard. You can re-invite the employee to have them complete their details, update that yourself on the Manage People page, or manually calculate their annual allowance.
In the case the employee is no longer with the company, you can manually calculate their annual allowance and enter that on their W-2 form.
Example:
Billy became eligible in January and was offered a monthly allowance of $200. He left the company on June 14th of the same year, after receiving that month's allowance. Billy’s total allowance for the year should be calculated as 6 months × $200 = $1,200, which should be reported on his W-2 form.
How can I Update Amounts for an Active Employee Showing 0 for Box 12?
This means an employee did not enter their profile information, such as if they remain in New or Invited status. Go to your Manage People page, find the employee's name, and select the three dots under the Actions column. Choose Edit to update the required Personal Information and Family Status, and the report will reflect those changes.
What if a Change Needs to Be Made for an Inactive or Terminated Employee?
If an employee can no longer access their Tax Savings page, you can manually update the W-2 report based on the information the employee provides. For those with 0 for Box 12, you can manually calculate their annual allowance.
My Accountant Says the Information is Incorrect, What Should I Do?
If your accountant believes the information is incorrect, we recommend deferring to your payroll professional, CPA, or tax expert. Additional details on completing the W-2 for QSEHRA are available on the W-2 form itself.
Does PeopleKeep Help with Filing IRS Forms?
No, PeopleKeep does not provide tax or filing services. We recommend working with a CPA or tax expert for assistance in filing IRS forms.