Reporting Health Care Costs on an Employee’s W-2 (only applies to groups with 250 or more employees)

As of January 1, 2013, certain employers must report the cost of health care coverage provided under an employer-sponsored group health plan on employees’ W-2 forms. This requirement became effective as of January 1, 2012 but was deferred by making the requirement optional for employee’s Tax Year 2011 W-2 forms. The requirement is now effective for employee Tax Year 2012 W-2 forms that will be issued in 2013.

The IRS has provided some additional relief to employers who issue fewer than 250 W-2 forms in the previous calendar year, as those employers do not have to report health care costs on Tax Year 2012 W-2 forms. Key information related to this new requirement stemming from the Patient Protection and Affordable Care Act (PPACA) can be found in the latest Legislative Alert from BenefitMall.


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