More Health Care Reporting Requirements…

August 31, 2010 | Subscribe to our RSS Feed

Employers- the new health care reform package requires you to report the value of the health insurance coverage you provide employees on each employee’s annual Form W-2 after 2010.

The Patient Protection and Affordable Care Act ( PPACA) imposes a number of new reporting requirements, although the IRS emphasized that the reporting is only for informational purposes only and does not affect an employee’s tax liability.

Applicable employer-sponsored coverage is coverage under any group health plan made available to the employee by the employer which is excluded from the employee’s gross income under Code Sec. 106 or would be excluded if it was considered employer-provided coverage under Code Sec. 106. Applicable employer-sponsored coverage also includes coverage under a federal, state or local government group health plan.

Some items are excluded, such as coverage for long-term care, accident or disability income.

Employers must report the aggregate or total cost of employer-sponsored health insurance coverage. Employers need not provide a specific breakdown of the various types of medical coverage, the IRS explained.

Here is a complete list of the Reporting Requirements for the Form W-2.

Questions?

sam.cohen@glassjacobson.com