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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.

 

The information and materials on this blog are provided for informational purposes only and are not intended to constitute legal or tax advice. Information provided in this blog may not reflect the most current legal developments and may vary by jurisdiction. The content on this blog is for general informational purposes only and does not apply to any particular facts or circumstances. The use of this blog does not in any way establish an attorney-client relationship, nor should any such relationship be implied, and the contents do not constitute legal or tax advice. If you require legal or tax advice, please consult with a licensed attorney or tax professional in your jurisdiction. The contributing authors expressly disclaim all liability to any persons or entities with respect to any action or inaction based on the contents of this blog.

Bonnie Mangels – Bonnie is the Corporate Counsel and Senior Compliance Manager for Sequoia. When not inundated in paperwork and legal briefs, her interests include arts and crafts, bunnies, and the Bay Area.