The Affordable Care Act requires employers who filed 250+ Forms W-2 for the 2014 calendar year to report the cost of coverage under an employer-sponsored group health plan. Please note, the number of Forms W-2 the employer must file is determined without application of any entity aggregation rules for related employers. The value of the health care coverage should be reported on Form W-2 in Box 12 and the amount must include both the portion paid by the employer and the portion paid by the employee. The deadline for employers to provide 2015 Forms W-2 to employees is 2/1/2016. The deadline for filing with the IRS is 2/29/2016 if paper filing and 3/31/15 if e-filing.
Action Item
Employers should ensure that their payroll administrator has the value of both the cost of coverage paid by the employer and the employee for each covered employee and that it is timely and accurately reported on each Form W-2.
More Information
For additional information, please refer to the IRS guidance article, which illustrates the type of coverage that employers must report on the Form W-2.
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