W-2 Reporting Mandates Under PPACA

The Patient Protection and Affordable Care Act (PPACA) included a mandate that requires employers to report the aggregate cost of healthcare via annual W-2 filing.  Employers filing 250 or more W-2’s were required to begin filing for tax year 2012 (W-2’s issued in 2013), but employers filing fewer than 250 W-2’s currently fall under transition relief until such time that the IRS releases additional guidance.  The IRS has stated that this transition relief will apply through calendar years that start at least six (6) months after further guidance is issued.  With this being said, employers with fewer than 250 W’s can rest assured that transition relief will continue through 2015.

Information Required for W-2 Reporting

PPACA requires employers to report the aggregate cost of “applicable employer-sponsored coverage”.  This includes health insurance, as well as dental, vision and other benefits – in some instances.  The IRS has published a chart for employers to use as a guide when determining what benefit plans must be reported.  The chart can be referenced by clicking here.

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