Answers on W-2 Reporting of Health Care Benefits
May 7, 2012 Leave a comment
On March 23, 2010, the Affordable Health Care Act (also informally known as Obamacare) was signed into law. Right now, the provisions of this act are still in force and certain features will begin to transition into action this year.
One of those items includes the requirement for employers to report health care benefits on W-2s for 2012. In general, the value of the health care coverage is to be reported in Box 12 of the W-2 with Code DD. The amount reported will include both the portion paid by the employer and the portion paid by the employee.
There will be some transition relief for employers, but take notice of any future IRS announcements that will provide additional guidance on this reporting.
The costs of health care provided by employers and employees will appear on the W-2 for informational purposes only and the employee should note that they will not be taxed on this coverage.
If you are an employer and want further information from the IRS, check out this link.
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