What is the W-2 reporting requirement?  The cost of employee health coverage must be reported if your company filed 250 or more W-2 forms in the previous calendar year.  For example, if your company filed 250 or more W-2 forms for the 2015 tax year, you will be required to report the cost of employee health coverage on your 2016 W-2 forms.

What information does this report need to contain?  You will need to provide the amounts paid by both the employer and employee for health care coverage.  The IRS has provided guidance and more information here.

When is the deadline?  Applicable employers must file this information with the Internal Revenue Service (IRS) by the annual W-2 form filing deadline of 1/31.  This deadline applies to both paper and electronic filing.

What do I need to do now?  Ensure your payroll administrator has the total value of health care coverage provided to employees and that this information is timely and accurately reported on each W-2 form.

Additional Resources:
Please refer to the IRS guidance for additional information, as well as a chart that illustrates the types of coverage that employers must report on the form W-2.  IRS Notice 2012-9 also provides further guidance on this reporting requirement, including when coverage under a dental or vision plan must be reported (see page 14, Q-20 and A-20).



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.