W-2 Reporting Requirement under Health Care Reform(Updated 10/14/10)

On October 12, 2010, the IRS announced that employers are no longer required to report to cost of coverage under an employer-sponsored group health plan on employees' W-2 forms for the 2011 tax year.

Reporting the cost of coverage is now optional on W-2 forms for the 2011 tax year. The Treasury Department and the IRS issued the delay to allow employers more time to update their payroll systems and procedures to comply with the reporting requirement.

W-2 Reporting

Beginning with the 2012 tax year, health care reform requires employers to calculate and report the aggregate cost of employer-sponsored health insurance coverage on employees' W-2's. If an employee enrolls in medical, dental, and prescription drug coverage, the employer only has to report one lump sum value.

Website Credits

• http://www.irs-gov/newsroom/article/0,,id=237894,00.html
• http://www.irs.gov/pub/irs-drop/n-11-27.pdf

For more information, please contact your accountant

Note: This notice is for informational purposes only and is subject to change without notice