Administration Delays W-2 Health Value Reporting

NAIFA Reports:

On October 12, the Obama administration announced a one-year delay of the W-2 reporting provision requiring employers to report the cost of health insurance coverage on employees’ W-2 tax forms.

Section 6051(a)(14), added by the Patient Protection and Affordable Care Act, provides that the aggregate cost of applicable employer-sponsored coverage must be reported on Form W-2. Instead of a mandatory reporting requirement, the draft 2011 W-2 tax form includes an optional line for employers to report the cost of employer-sponsored health insurance coverage.

According to IRS Notice 210-69, reporting the cost of employer-sponsored group health plans on the Form W-2 will not be mandatory in 2011. Relief for employers was deemed “appropriate” by IRS and the Treasury Department to allow employers time to adjust payroll systems and update procedures in order to comply with new reporting requirements.

NAIFA welcomes the extra preparation time necessary to comply with the requirement.

NAIFA Staff Contact: Diane Boyle, Vice President – Federal Government Relations, at (703) 770-8252.