You can do it! How to build a better W-2

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in Office Management,Payroll Management

This year, completing W-2 forms will be even more challenging for employers that must report employees’ health benefits. Critical due dates: Employees must receive their copies by Jan. 31, 2013. The Social Security Administration (SSA) must receive paper forms by Feb. 28, 2013; e-filers must file by April 1, 2013.

Here’s the scoop on what you need to know to get W-2s right the first time.

Health benefits reporting. If you filed at least 250 W-2s for 2011, report the aggregate cost of employees’ health benefits in Box 12, with Code DD. Reminder: The aggregate cost includes the employer and employee shares of group health insurance that’s excludable from employees’ incomes under tax code Section 106. Use the COBRA valuation, minus the 2% surcharge.

PAYROLL PRACTICE TIP: Not every health benefit is reportable. For a complete list of reporting exclusions, see "Form W-2 Reporting of Employer-Sponsored Health Coverage."

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