IRS issues more guidance on health benefit W-2 reporting — 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 more guidance on health benefit W-2 reporting

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in Office Management,Payroll Management

Beginning with 2012 W-2 forms, you must report the value of employees’ health benefits (Box 12, with Code DD). Reporting on Form W-3 isn’t ­necessary.

Last year, the IRS provided transition relief that excused employers filing fewer than 250 W-2s during the preceding year from reporting. That relief, however, didn’t address a variety of other sticky reporting situations.

Good news: Under new guidance, W-2 reporting is excused in more instances. (Notice 2012-9, IRB 2012-4)

What’s new

Under the 2011 transition relief, no W-2 reporting is necessary for terminating em­­ployees who request early W-2s, retirees who receive health benefits but no other reportable compensation or taxes, self-insured plans that aren’t subject to COBRA and multi-employer plans.

Until further guidance is issued, the IRS is expanding this no-reporting rule to the following:

  • For discriminatory self-insured plans, the cost of excess reimbursements that a...(register to read more)

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