IRS Announces Delay in Implementing New W-2 Reporting Requirements
The new health care reform law provides that employers must disclose the aggregate cost of employer-sponsored health coverage(s) provided to employees on the employee’s Form W-2. The cost of the health benefit is not considered taxable income, but will appear on the employee’s W-2 for informational reporting purposes.
This month the IRS announced a one-year delay in the start date of this requirement.
Although this requirement is not fully effective until the 2012 tax year, employers should not wait to prepare for these changes. Employers should ensure that they or their payroll provider are prepared to gather this information in advance of having to complete the Forms W-2 for the tax year 2012.
Contact SourceOne Partners for infomation on how we can help you be compliant with these new regulations.