Our Benefits Blog

Types of Coverages Subject to W-2 Reporting

Posted by Tom Stonebraker on Feb 29, 2012 12:00:00 PM

The Patient Protection and Affordable Care Act (PPACA) requires employers to report the aggregate cost of employer-sponsored group health coverage on employees’ Forms W-2. The purpose of the reporting requirement is to inform employees about the cost of their health coverage. The reporting does not cause employees’ health coverage to become taxable to them.

Most employers are more than willing to let their employees know how much their benefits cost but they aren't sure what needs to be reported.  So attached is a "Health Care Reform Legislative Brief" that we provide to our customers so they know the answer to that question.

Click Here for an easy to read and understand chart of what need to be reported.

Topics: Obamacare, PPACA, Healthcare Reform, W-2, W2

Health Care Reform: Making Sense of the New W-2 Reporting Rules

Posted by Tom Stonebraker on Feb 28, 2012 4:44:00 PM

IRS Issues Additional Guidence on W-2 Reporting.

The Patient Protection and Affordable Care Act (PPACA) requires employers to report the aggregate cost of employer-sponsored group health coverage on employees’ Forms W-2. The purpose of the reporting requirement is to inform employees about the cost of their health coverage. The reporting does not cause employees’ health coverage to become taxable to them.

This reporting requirement was initially set to take effect beginning with the 2011 tax year. However, in October 2010, the Internal Revenue Service (IRS) delayed the compliance date by making health coverage cost reporting optional for the 2011 tax year. In April 2011, the IRS issued Notice 2011-28, which further delayed compliance with this requirement for small employers (those filing fewer than 250 Forms W-2) and provided interim technical guidance on the reporting requirement.

On Jan. 3, 2012, the IRS issued Notice 2012-9, which replaced Notice 2011-28, and updated the interim technical guidance on the Form W-2 reporting requirement.

This Talon Benefits Legislative Brief summarizes the IRS’s interim guidance on the Form W-2 reporting requirement.

Click here to Download the rest of the Brief.

 

Topics: Obamacare, healthcare topics, Healthcare Reform, W-2, W2

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