However, employers required to file fewer than 250 forms W-2 for the preceding calendar year i.e, 2011, are not required to follow this guidance, but may optionally include this information on the W-2.
The chart provided by the IRS indicates what where this should be disclosed and what types of insurance must be include
The value of the health care coverage will be reported in Box 12 of the Form W-2, with Code DD to identify the amount. There is no reporting on the Form W-3 of the total of these amounts for all the employer?s employees.
In general, the amount reported should include both the portion paid by the employer and the portion paid by the employee
The biggest confusion we?re already seeing when we talk to clients about this is that there is no ?tax effect?, meaning that although it needs to be ?disclosed? on the W-2, it?s disclosed for informational purposes only, presumably so the employee has a better idea on just how much the employer is paying inhealth insurance coverage on behalf of the employee.
Employer are not required to do this disclosure if they file fewer than 250 W-2 forms for the preceding calendar year; and (2) a W-2 form was furnished to an employee who terminated before the end of a calendar year, and the employee requested in writing a W-2 form before the end of that year. In addition, it is optional for third-party sick-pay providers that provide W-2 forms to employees of other employers to report the aggregate cost of employer-sponsored health insurance coverage on Form W-2.
But regardless, we don?t see this affecting many of our clients, since we specialize in working with small businesses with less than 250 employees. Nonetheless, because of the substantial press being made about this, I felt it was important to educate even the business?s with less than 250 W-2?s, so they know that this provision does not apply to them.
Still confused??give us a call!
Copyright Information 2012 Professional Association of Small Business Accountants
Presented by Steven A Feinberg, CPA of Appletree Business Services LLC, a PASBA member accountant, located in Londonderry, New Hampshire. Steve has more than twenty- five years experience in Federal and New Hampshire issues, specializing in small business general, tax and payroll matters. For additional information on these and other current business and tax issues, email Steve at info@appletreebusiness.com or call (603) 434-2775.
Steven A. Feinberg ? www.AppletreeBusiness.com ? Get Appletree Blog via Email!
Filed under: Uncategorized Tagged: | Business, Employee Health Insurance, employees, fringe benefits, IRS, medical expense, Small Business, W2
Source: http://blog.appletreebusiness.com/2012/07/25/employers-must-now-disclose-heath-insurance-on-w-2s/
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