Posted on November 1, 2011

In 2010, The Patient Protection and Affordable Care Act was passed. The Act requires employers to report the cost of coverage under an employer-sponsored group health plan.

Top 5 Need-to-Knows about the Health Coverage Reporting on W-2
1. W-2 reporting is mandatory for 2012 for employers with over 250 W-2s in 2011 (W-2 reporting is mandatory in 2013 for all employers).
2. The cost of the healthcare benefits will be reported in Box 12, Code DD of Form W-2.
3. The amount reported should include both the portion paid by the employer and the employee.
4. The employer-provided health coverage requirement is non-taxable.
5. The purpose of the reporting requirement is to provide employees useful and comparable consumer information on the cost of their healthcare coverage.

Do you have clients that will file 250 or more W-2s for 2011?
Paycor has your clients covered with this new legislation. Paycor clients, with an estimate of 250 or more federal W-2s for 2011, will receive instructions on how to tie deduction codes to employees in their Paycor payroll application and HR Performer, if applicable. This will be a simple one-time process to ensure they are compliant for 2012.

For more information on the employer-provided health coverage reporting, go to