Health Care Coverage Cost and Tax Season Compliance

Are you an employer that offers or provide group health coverage to your workers?  Were you required to file 250 or more Forms W-2 for tax year 2012?  If so, an Affordable Care Act/IRS requirement to report health care coverage costs on Forms W-2 for 2013 applies.  What follows below is important information so that you can comply with the regulations.

Highlights:

  • Report the aggregate cost of applicable employer-sponsored health care coverage on the employee’s Form W-2 (Box 12, code DD).
  • Report is informational only; there are NO tax consequences.
  • Exceptions: Certain small employers or employers that contribute to a multiemployer plan.
  • IRS provides detailed instructions to assist employers and payroll administrators in meeting this reporting requirement.  The instructions first applied for 2012 and there are no changes for tax year 2013.

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Jeffrey R. Ungvary

Jeffrey R. Ungvary

President