Under the Patient Protection and Affordable Care Act of 2010,employers will have to add information to W-2 Forms to report the amount that the employer has paid for employee health insurance coverage.
Employer’s health insurance payments will have to be reported on the W-2 Forms starting in January 2013 (for 2012 wages). This means that affected employers should start now to ensure that their wage systems accurately track this information.
There is a temporary exception for businesses with fewer than 250 employees. The temporary exception was established through the IRS interim guidance (a notice entitled “Interim Guidance on Informational Reporting to Employees of the Cost of Their Group Health Insurance Coverage”). It is not a statutory exception.
The temporary exception is expected to expire in January 2014, giving smaller businesses an extra year to come into compliance.
Further details are available through:
- A more complete blog post that we published with details about the reporting requirement
- The Law: Patient Protection and Affordable Care Act of 2010 (see section 9002)
- The IRS’ Interim Guidance on Informational Reporting to Employees of the Cost of Their Group Health Insurance Coverage, Notice 2011-28