What is the W-2 reporting requirement? The cost of employee health coverage must be reported if your company filed 250 or more W-2 forms in the previous calendar year. For example, if your company filed 250 or more W-2 forms for the 2015 tax year, you will be required to report the cost of employee health coverage on your 2016 W-2 forms.
What information does this report need to contain? You will need to provide the amounts paid by both the employer and employee for health care coverage. The IRS has provided guidance and more information here.
When is the deadline? Applicable employers must file this information with the Internal Revenue Service (IRS) by the annual W-2 form filing deadline of 1/31. This deadline applies to both paper and electronic filing.
What do I need to do now? Ensure your payroll administrator has the total value of health care coverage provided to employees and that this information is timely and accurately reported on each W-2 form.
Please refer to the IRS guidance for additional information, as well as a chart that illustrates the types of coverage that employers must report on the form W-2. IRS Notice 2012-9 also provides further guidance on this reporting requirement, including when coverage under a dental or vision plan must be reported (see page 14, Q-20 and A-20).
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