As with many areas within the Healthcare Reform Law (PPACA), the topic of W-2 reporting has been confusing on many points. In an effort to help employers better understand the reporting requirements, the IRS has developed a chart to identify the types of coverage that are (1) required to be reported, (2) types that are not required and (3) those types that have the option to be reported on the W-2.
Below is a snapshot of the IRS W-2 Reporting Chart. To view the full chart click W-2 Reporting Chart.
Healthcare Reform (PPACA) requires that all employers begin reporting on their W-2s the cost of coverage under an employer sponsored group health plan. As of the 2012 W-2 (issued in 2013) employers that issue 250 or more W-2s are required to begin this reporting, small groups are excluded from reporting until further guidance is issued by the IRS.
As employers begin to implement the W-2 reporting with their payroll vendors, many questions arise as they work to be compliant with the IRS rules. In a future blog post we will review all the issues surrounding the W-2 reporting requirements, however if you have any specific questions regarding this issue please contact i2i benefits at firstname.lastname@example.org or 650-363-7237.
IRS W-2 Reporting FAQ
IRS W-2 Reporting Chart