Employers Must Now Report Health Care Benefits
Under the Affordable Health Care Act, employers are now required to report the value of health care benefits. Beginning in 2011, employers must report the value of health care benefits for each employee. This amount will appear on the new 2011 form W-2 to be issued in 2012. This is a reporting item and will not affect taxable income.
To give employers more time to update their payroll system, the IRS has made this requirement optional for 2011. For small businesses with fewer than 250 employees, it will remain optional for 2012.
If you have questions about this requirement, please contact our office.
By Leon Clinton