W-2 Health Care Coverage Reporting Requirement
The IRS has released notice 2010-69 making the health care coverage W-2 reporting requirement optional for 2011. Before the notice was issued, employers were required to report the applicable cost of employer provided coverage on the 2011 Form W-2 under the Patient Protection and Affordable Care Act of 2010, enacted March 23, 2010. This reporting will no longer be mandatory for 2011, allowing employers additional time to implement changes to their payroll systems in order to track the reportable costs. Further guidance from the IRS as to when the reporting requirement will be put into effect is expected before the end of this year. In the meantime, the IRS has released a draft version of the 2011 W-2, which includes the codes employers will use to report the coverage costs. Click here to view the 2011 draft W-2.
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