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)
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)