The Patient Protection and Affordable Care Act (PPACA) requires health benefits to be reported on W-2s beginning 2012 tax year. So there is no change for the 2011 W-2s going out but now is the time to begin collecting the data. The company must report the employer-sponsored health coverage even though they are not currently subject to tax. There is an exception for companies with less than 250 W-2s in the prior year.
The burden will be the greatest for companies that self-insure. The easiest solution is to use the COBRA premium charged to terminated employees. Costs for dental, vision and long-term health insurance can not be included.
As the cost of health insurance rises it is important to share with employees the true value of their benefits package. The threat is that new tax laws will be passed that will include health benefits as taxable income.
If you need a good payroll service to help you with this years W-2s the the Accounting Aisle can help.
The burden will be the greatest for companies that self-insure. The easiest solution is to use the COBRA premium charged to terminated employees. Costs for dental, vision and long-term health insurance can not be included.
As the cost of health insurance rises it is important to share with employees the true value of their benefits package. The threat is that new tax laws will be passed that will include health benefits as taxable income.
If you need a good payroll service to help you with this years W-2s the the Accounting Aisle can help.
Labels: health benefits, payroll service, W-2
