There’s one less reporting burden Payroll will have at year-end – at least temporarily.
IRS just announced that employers won’t have to begin reporting the cost of healthcare coverage under an employer-sponsored group plan until 2012 (i.e., W-2s issued in 2013). Reporting in 2011 will be optional, with no penalties issued for those who choose to wait until reporting becomes mandatory.
The Treasury Dept. and IRS approved the delay to give employers time to update their payroll systems or procedures. You should see reporting guidance later in 2010.
IRS also just released a draft 2011 Form W-2 that shows employers will report the healthcare amounts in Box 12, using the new Code DD. The back of Copy B reminds employers that the amounts reported aren’t taxable – the info’s just there to help employees better understand the value of their benefits.
You can get more info here and here.
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