rss

Cogitate Inc Blog

Our company blog, full of information about Cogitate.


Pro Fund Accounting v. 7000 Available Now!

It seems we all have to make changes in life that seem strange and unfair. Cogitate’s development team has had to go back and change the way we do things in order to properly support Windows 8 and beyond. While we were learning the new way of doing things we added in a few extras.
We are pleased to announce the release of the next update to the Pro Fund Accounting package. “What is all the hoopla about?” you may be asking.

One of the many things that have changed is the output file management in Pro Fund Accounting – things like where the direct deposit file is located or where the state trunkline file is placed have all been reworked to add flexibility to the fund accounting software.
Another large change is the new Crystal Reports system which allows printing reports on the latest hardware.
We added a new installation and a program update monitoring system that automatically checks for updates.
This release also added support for photos of equipment, inventory, and personnel.
The Pro Fund Accounting software was updated to operate correctly on multiple monitors.
We added a program to export paystubs and email them to employees.
And last, but not least, we combined our voter registration software into the Pro Fund Accounting Municipal suite.

This release will come to you differently; a representative from Cogitate will contact you to schedule the update to Pro Fund Accounting, version 7000. If you have any questions or if you would like the update sooner, then you may contact George at 866-634-9991 (ext. 9) to be at the front of the line.

How to Report Healthcare Costs on Your W2s Using Pro Fund Accounting

We’re ready for the mandated health care costs that are to be reported on your employees W-2s. You can get your Pro Fund Accounting software ready, too, by following these steps and watching a short video on how to make the changes. Watch how to report healthcare costs on your employee's W2s.

Changing the Health Insurance Deduction Codes

  • Under Payroll/Payroll Constants, open Deduction Types and locate your health care deduction code(s)
  • Edit them to remove the information in the W2 Info box and change the Tax Code box from “Box 14” to DD
  • On the Parameter Titles page, in Parameter Title 5, enter “CMP AMT” (stands for Company Amount); this is to hold the amount the employer pays for the employee’s health care
Reflecting the new Deduction Code Requirements in Employee Maintenance
  • In Employee Maintenance, go to the Deductions tab and in the Select Code column, locate the deduction code for the health care deduction(s) that you made in Deduction Maintenance and click it.
  • To “catch up the year” to reflect the amounts paid on the employee’s behalf for the payrolls already paid during 2013, click EDIT, then enter the TOTAL YTD HEALTH CARE paid by the employer in the CMP AMT box before running your next payroll.
  • After the payroll is finished, repeat step 1 in this section, then enter the normal amount paid on the employee’s behalf. If the employee’s status changes during the year, change the amount in this box to the new amount the employer pays.
What is printed on the W-2s
The Health Care Cost and the Tax Code, DD, will be printed in one of the "Box 12" boxes (there are 4 boxes available and, usually, deferred compensation or retirement is printed in the boxes). The amount printed will be a combination of the amounts your employees paid toward their health insurance and the amounts you, as the employer, paid. These two figures, added together, should equal the total amount paid to the insurance company(ies) for health insurance during the year.

Health Insurance Paid in-full by Employer; no health insurance deduction code

After calculating your W-2s for 2013, you will need to edit each W-2 to reflect the amount you, as the employer, paid for each employee’s health insurance.

Explain to your Employees what this is all about
The amount reported does not affect tax liability, as the value of the employer excludible contribution to health coverage continues to be excludible from an employee's income, and it is not taxable. This reporting is for informational purposes only, to show employees the value of their health care benefits.

You can learn more about Pro Fund Accounting here. If you found this post helpful, please feel free to leave a comment below.