November 2010 Archives

November 2, 2010

IRS Defers W-2 Health Coverage Reporting

The IRS has decided to defer the new requirement that employers report the cost of health coverage under employer-sponsored group health plans. Under the Affordable Care Act passed in March, employers are required to report these costs for informational purposes--they are not taxable items. The IRS determined that it was necessary to delay implementing this new requirement for a year in order to give employers time to change their payroll systems so they can comply with the new reporting requirements. The IRS has issued a draft Form W-2 for 2011 which includes the codes employers can use to report the cost of health coverage if they choose to do so for 2011.