W-2 Reporting Requirement Delayed for Employers with Less than 250 Employees

March 2011

On Tuesday March 29th the IRS released Notice 2011-28 which provides guidance on the reporting of the cost of employer sponsored health insurance on employee’s W-2s.  The notice contains 31 questions and answers designed to help employers understand the reporting requirements.  The announcement, and a copy of Notice 2011-28, can be found at http://www.irs.gov/newsroom/article/0,,id=237870,00.html.

In a significant development for many employers, the IRS has further delayed the W-2 reporting requirement for employers with less than 250 employees.  The delay applies to any employer required to file fewer than 250 W-2s for the 2011 tax year.  These employers will not be required to report health insurance costs on employees W-2s until the 2013 tax year (i.e. W-2s that are provided to employees early in 2014).

Employers who file 250 or more W-2s for tax year 2011 are still required to report health costs on W-2s beginning with the 2012 tax year.

Download as MS Word .doc

Download as .pdf

 

While every effort has been taken in compiling this information to ensure that its contents are totally accurate, neither the publisher nor the author can accept  liability  for any inaccuracies or changed circumstances of any information herein or for the consequences of any reliance placed upon it. This publication is distributed on the understanding that the publisher is not engaged in rendering legal, accounting or other professional advice or services. Readers should always seek professional advice before entering into any commitments.