Under the provisions of the Affordable Care Act (ACA) of 2010, employers are required to report the aggregate cost of group health plan coverage provided to employees on their Form W-2. However, in April 2011, the IRS published Notice 2011-28, which provided interim guidance on reporting requirements and provided transitional relief, postponing the requirement, for certain employers. As of December, 2013, no further guidance has been issued and the requirements issued in 2011 remain in effect today. Those requirements are as follows:
- Small employers. Employers who filed less than 250 Forms W-2 for the 2012 calendar year ARE NOT required to report health coverage costs on 2013 Forms W-2.
- Large employers. Employers who filed 250 or more Forms W-2 for the 2012 calendar ARE required to report health coverage costs on 2013 Forms W-2.
For a comprehensive overview of what coverage must be reported, please click here.
If additional, or final, guidance is issued in the future to expand the reporting requirements listed above, it will apply only to calendar years that start at least six months after the revised guidance is issued.
Remember, W-2 reporting of health plan coverage is for informational purposes only and does not cause excludable employer-provided health care coverage to become taxable. The purpose of the reporting to show employees the value of their health care benefits so they can be more informed customers.
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