Mandatory Reporting of Health Care Costs Delayed

by

via Journal of Accountancy

On October 12th, the IRS issued a notice that gives relief to employers regarding the reporting of costs of group heath plan coverage to employees.  Notification to employees on Form W-2 will not be required for 2011.

Employers are now required to include the aggregate costs of employer-sponsored health care coverage on employees’ W-2s for tax years beginning on or after January 1, 2011 under the new health care reform legislation.  The IRS determined additional time is necessary for employers to make the necessary changes to comply with this requirement.  Under Notice 2010-69 issued by the IRS, emplyoers will not be subject to penalties for failure to meet the requirements in 2011.

Employers can still report the 2011 health care coverage costs to their employees on Box 12 of Form W-2 using the code “DD.”

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