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ARTICLE · 09 FEBRUARY 2012

New Clarifications And Guidance On W-2 Reporting

The Health Care Reform Act requires employers to report the aggregate cost of employer-provided health coverage on each employee's W-2, beginning with the 2012 tax year (i.e., W-2 forms generally issued in 2013).

United StatesEmployment and HR

(Benefits Update, No. 1, February 2012)

The Health Care Reform Act requires employers to report the aggregate cost of employer-provided health coverage on each employee's W-2, beginning with the 2012 tax year (i.e., W-2 forms generally issued in 2013).

Recently, new guidance and clarifications were released by the IRS which will be required beginning with 2012 reporting, and voluntarily applicable for 2011 reporting. Below are some of the highlights about the new clarifications.

Subject of Guidance or Clarification

Overview

Exempt Employers

Small employers (less than 250 Form W-2s in preceding year) are exempt. Notice clarified that the 250 limit includes Forms W-2 filed by employer "agent" under Code section 3504.

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