Health Care Reform Reminder: Reporting Health Care Coverage on Employees’ W-2 Forms
As tax season approaches, remember to include the cost of health care coverage on your employees’ W-2 forms. The cost of employer-sponsored health plans must be reported, but excepted benefits like long term care coverage, disability insurance, or standalone dental and vision insurance should not be included.
The amount on the W-2 form will not be taxed. Both employer and employee contributions must be reported.
Transition relief remains in effect for smaller employers: employers that filed fewer than 250 W-2 forms for the 2012 tax year are not required to report the cost of health insurance coverage for the 2013 tax year.
For more information on what to report, read our Fact Sheet (PDF) or review the latest guidance from the Internal revenue Service (IRS).