New W-2 Reporting Requirement : Healthcare Cost Reporting Required on W-2s


Beginning with the W-2s issued in January 2013 (i.e., W-2s issued for the 2012 calendar year), large employers must report to employees the cost of their employer-sponsored group health plan coverage on the employee’s W-2 in box 12. This reporting to the IRS is for informational purposes only and is intended to communicate the cost of health care coverage to employees.

This new requirement applies to all employers who issue 250 or more W-2s and who provide applicable employer-sponsored health plan coverage during the calendar year. This includes private sector employers, federal, state and local governmental entities, churches and other religious organizations. Employers who currently issue fewer than 250 W-2s should not be surprised if that number is lowered in the future.

If this applies to your business, you will probably have questions about reporting this properly. The team at ATA is more than happy to answer your questions and help you navigate this new requirement. Call us at any time.