IRS Issues Instructive Chart for W-2 Reporting Under Health Reform

Under health care reform, employers must report the “aggregate cost” of “applicable employer-sponsored health coverage” on an employee’s Form W-2. The value must first be reported on the Form W-2 issued in January 2013 for the 2012 tax year. In order to comply, employers must:

• determine the applicable employer-sponsored coverage that is provided to each employee,
• calculate the aggregate cost of such coverage for each employee, and
• report that cost on each employee’s Form W-2.

The IRS has recently issued Notice 2012-9, which contains a chart that will help employers determine what to include when calculating the aggregate cost to report. This chart may be used until further guidance is issued.

For help calculating the amount for self-insured plans or other issues, please contact any member of our Employee Benefits team.