IRS issues W-2 health benefit reporting guidance — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

IRS issues W-2 health benefit reporting guidance

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in Employee Benefits Program,Firing

The health care reform law requires you to report the value of employees’ health benefits on their W-2 forms (Box 12, with Code DD). The IRS waived mandatory reporting for 2011, pending future guidance.

The guidance, which has now been released, requires employers filing 250 or more W-2s to report beginning with 2012 W-2s that are filed in 2013.

Reporting on Form W-3, however, isn’t required.

The guidance provides valuation methods and new transition relief for certain employers and benefits. You may use this guidance if you choose to report employees’ health benefits on their 2011 W-2s. (Notice 2011-28, IRB 2011-16)

What’s out

The law excludes from reporting health reimbursement accounts, health savings ­accounts, dental or vision care that’s not integrated into a group plan, long-term care insurance, workers’ compensation and specific disease or hospital/fixed indemnity plans.

In addition, prior to 2014, and until further ...(register to read more)

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