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 the Author

Reed Tinsley CPA

This article is written by Reed Tinsley, a Houston, TX-based CPA with over 30 years of experience advising physicians and medical practices across Texas and the United States. Reed holds certifications as a Certified Valuation Analyst (CVA), Certified Healthcare Business Consultant (CHBC), and Certified Financial Planner (CFP), specializing exclusively in the healthcare sector. He is a published author, nationally recognized speaker, and trusted advisor to physicians on accounting & tax, practice management, and financial planning. Schedule a Free Consultation.