Complying With the New Form W-2 Rules for Reporting Health Care Benefits
1 hour 30 minutes
Tax reporting rules can be confusing, make sure you are in compliance with required reporting for health care benefits.
The Affordable Care Act requires employers to report the cost of coverage under an employer-sponsored group health plan. Reporting the cost of health care coverage on the Form W-2 does not mean that the coverage is taxable. The value of the employer’s excludable contribution to health coverage continues to be excludable from an employee’s income, and it is not taxable. This reporting is for informational purposes only and will provide employees useful and comparable consumer information on the cost of their health care coverage. This topic will help those responsible for complying with these information reporting requirements understand when reporting is required, which forms of health care are included, and how to identify and correct errors on Form W-2. This information is critical for employers so that they can ensure compliance with this reporting requirement and avoid penalties for failure to accurately report.
• You will be able to describe the correct methods to value health care coverage as reported on Form W-2.
• You will be able to discuss the basic information reporting rules.
• You will be able to explain the process to correct Form W-2s.
• You will be able to identify the types of health care coverage not reported on Form W-2.