The IRS has recently published Notice 2011-28, which allows businesses with fewer than 250 employees an extra year to comply with new reporting requirements on the W-2 Forms.

Notice 2011-28 covers the following items:

  • Timeline for reporting health insurance costs on W-2s:
    1. 2011 (W-2s prepared Jan 2012): Optional reporting
    2. 2012 (W-2s prepared Jan 2013): Employers with 250 or more employees must begin reportin
    3. 2013 (W-2s prepared Jan 2014): Employers with less than 250 employees must begin reporting
  • The health insurance costs should be reported on the W-2, box 12, coded “DD”.
  • The total cost of health insurance (paid by employer + paid by employee) should be reported.
  • The Notice stresses that this reporting requirement is only for informational purposes and won’t cause excludable employer-provided health coverage to become taxable.

 

To access the full version of Notice 2011-28, please click here.

Please contact us at (713) 667-9147 if you have questions regarding Notice 2011-28.