Accounting and Tax Services
Oct 14

Interim Relief from Reporting the Cost of Employer-sponsored Health Care on Form W-2

Beginning with Forms W-2 issued for 2011, the Affordable Care Act requires employers to report the aggregate cost of employer-sponsored health care coverage on an employee's Form W-2. The IRS has provided interim relief from this reporting requirement by announcing that reporting the cost of coverage under an employer-sponsored group health plan on Form W-2 will not be mandatory for Forms W-2 issued for 2011 (IRS Notice 2010-69). The Treasury Department and the IRS granted the relief because they felt employers needed additional time to make any necessary changes to their payroll systems or procedures in preparation for compliance with the reporting requirement. Even though reporting the cost of overage is optional for 2011, the IRS released a draft of the 2011 Form W-2 that indicates employers that choose to report health care coverage on employees' Forms W-2 will do so in box 12 using code DD.

About Reed Tinsley, CPA

As a top advisor to physicians, I help increase practice profits by delivering hands-on, expert medical accounting/tax support, practice counsel, and revenue-building strategies. Read more →