Vision Payroll

October 28, 2011

Question of the Week: Do We Have to Report Health Insurance on Our W-2s?

Do We Have to Report Health Insurance on Our W-2s?
Do We Have to Report Health Insurance on Our W-2s?
This week’s question comes from Maria, an HR director.

Maria asks:

I keep hearing from our employees that we have to report the cost of health insurance on the Forms W-2 this year and that the employees will be taxed on it. Do we have to report health insurance on our W-2s?

Answer: As announced by the Internal Revenue Service in Notice 2010-69 and Notice 2011-28, reporting of the cost of health insurance has been postponed to at least 2012 for some employers and beyond that for the rest.

Notice 2010-69 Postponed Effective Date for All Employers

As previously reported, in Notice 2010-69 the Internal Revenue Service (IRS) postponed the requirement that health insurance be reported on Forms W-2. Originally, under the Patient Protection and Affordable Care Act of 2010, reporting was to begin on the 2011 Forms W-2, which are distributed to employees in January 2012. In order “to provide employers with additional time to make any necessary changes to their payroll systems or procedures in preparation for compliance with the reporting requirement,” the IRS postponed the reporting requirement until the 2012 Forms W-2, which are distributed to employees in January 2013.

Notice 2011-28 Further Postponed Deadline for Many Employers

In Notice 2011-28, the IRS further postponed the deadline for employers who are required to file less than 250 Forms W-2. Employers who are required to file fewer than 250 Forms W-2 for calendar year 2011 will not be required to report health insurance on Form W-2 in 2012. Furthermore, until further guidance is issued by the IRS, any employer required to file fewer than 250 Forms W-2 in a calendar year will not be required to report the health insurance on Form W-2 for the following year.

Notice 2011-28 Does not Cause Excludable Employer-Provided Health Care Coverage to Become Taxable

According to Notice 2011-28, nothing in §6051(a)(14), Notice 2011-28, or the additional guidance that is contemplated under §6051(a)(14), causes or will cause otherwise excludable employer-provided health care coverage to become taxable.

Contact Vision Payroll Today

Contact Vision Payroll today if you have further questions on 2011 Form W-2 reporting for health coverage.

April 27, 2011

Tip of the Week: Notice 2011-28 Limits Which Employers Must Report Health Insurance

Filed under: News — Tags: , , , — Vision @ 5:04 pm
Notice 2011-28 Limits Which Employers Must Report Health Insurance
Notice 2011-28 Limits Which Employers Must Report Health Insurance
As previously reported, the Internal Revenue Service (IRS) has released Notice 2011-28, Interim Guidance on Informational Reporting to Employees of the Cost of Their Group Health Insurance Coverage.

Notice 2011-28 Applies To Large Employers

Notice 2011-28 exempts smaller employers from the reporting requirement. If an employer files fewer than 250 Forms W-2 for 2011, then the employer will be exempt from the reporting requirement for 2012 Forms W-2. Furthermore, until further guidance is issued by the IRS, such employers will continue to be exempt from the next year’s reporting requirements as long as they are required to file fewer than 250 Forms W-2 for a calendar year.

Further Guidance on Health Insurance Reporting on Form W-2 to Come

Over the coming months, Vision Payroll will provide further information on the interim guidance on informational reporting to employees of the cost of their group health insurance coverage as outlined in Notice 2011-28.

March 30, 2011

Tip of the Week: Guidance on Form W-2 Reporting for Health Coverage Issued

Filed under: News — Tags: , , , — Vision @ 6:11 pm
Guidance on Form W-2 Reporting for Health Coverage Issued
Guidance on Form W-2 Reporting for Health Coverage Issued
The Internal Revenue Service (IRS) recently released Notice 2011-28, Interim Guidance on Informational Reporting to Employees of the Cost of Their Group Health Insurance Coverage.

Notice 2011-28 Does not Cause Excludable Employer-Provided Health Care Coverage to Become Taxable

According to Notice 2011-28, nothing in §6051(a)(14), Notice 2011-28, or the additional guidance that is contemplated under §6051(a)(14), causes or will cause otherwise excludable employer-provided health care coverage to become taxable.

Notice 2011-28 Applies to 2012 Forms W-2

Notice 2011-28 applies to the 2012 Forms W-2, which will generally be furnished to employees during January 2013. Employers are not required to report the cost of excludable employer-provided health care coverage before the 2012 Forms W-2. The reporting will be in box 12 of 2012 Form W-2, using code DD.

Notice 2011-28 Contains Information on Calculating Reportable Amounts

Notice 2011-28 provides detailed information, in a question and answer format, on calculating reportable amounts, which amounts are included in the reportable amount, and which amounts are excluded from the reportable amount.

Contact Vision Payroll Today

Contact Vision Payroll today if you have further questions on changes to the 2012 Form W-2 reporting for health coverage.

Contact Us Vision Payroll
Client Remote Access