Required W-2 Reporting Required by the PPACA: Are You Ready?

by Michael Haberman on January 4, 2013 · 1 comment

 

2013 W-2 forms must include healhcare costs.

The first issue from the Patient Protection and Affordable Care Act (PPACA) also known as the Health Care Act, requires employers to report the cost of provided healthcare on W-2s issued this January 31st. Are you ready?

Who must comply?

Companies that have issued 250 or more W-2s in 2012 must make this reporting. Companies that issued fewer than 250 are exempted until next year, but are encouraged to do it this year in order to test the payroll system. According to IRS guidance this applies to “all employers that provide ‘applicable employer-sponsored coverage’…under a group health plan are subject to the reporting requirement.”

What must be reported?

The primary thing that must be reported is the cost of major medical. However, there are some other provisions. The other requirements and optional items are detailed in this CHART. 

According to the IRS “…the amount reported should include both the portion paid by the employer and the portion paid by the employee.” 

What should you do?

If you have not started doing anything yet you need to work with your insurance broker or provider to make sure you know exactly the associated costs. Then you need to work with you payroll provider to insure they have the data needed. If you do you payroll yourself just make sure you have the correct amounts.

Further guidance

Further guidance can be gotten from this IRS document:

Employer-Provided Health Coverage Informational Reporting Requirements: Questions and Answers

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{ 1 comment… read it below or add one }

hr management software January 7, 2013 at 3:15 am

Then you need to work with you payroll provider to insure they have the data needed. If you do you payroll yourself just make sure you have the correct amounts.

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