The Patient Protection and Affordable Care Act of 2010 mandates employers to report the aggregate cost of employer sponsored health care coverage on Form W-2, Wage and Tax Statement, beginning January 1, 2011. The IRS (Internal Revenue Service) released Notice 2010-69 (see link below) on October 12, 2010 providing interim relief to employers on this reporting requirement. The reporting is now voluntary in 2011. Furthermore, if employers do not report the aggregate cost of health coverage on Form W-2 in 2011, they are not subject to penalties. This decision made by the Department of Treasury and the IRS provides additional time to employers to make necessary changes to their payroll systems and better prepare to comply with the PPACA reporting requirements.
For additional intormation go to http://www.irs.gov/pub/irs-drop/n-2010-69.pdf
If you have questions, please contact us to discuss these significant health care reform changes.