Posted on July 23, 2012

Form W-2 Health Care Q&A

With recent changes to the Form W-2 health care reporting requirements, you may have questions about how you and your business will be affected. Paycor is here to help.

What does this legislation mean for my business?

The Affordable Care Act requires employers to report the cost of coverage under an employer-sponsored group health plan. However, reporting this coverage does not mean that the coverage will become taxable. The end goal of reporting coverage on the Form W-2 is to provide employees with useful consumer information about the cost of their health care coverage.

Does this apply to me? What if I don’t currently provide health care for my employees?

Only employers that filed 250 or more W-2s in the previous calendar year will be required to report their coverage costs on the current year’s W-2s. If you filed fewer than 250 W-2s in 2012, you are not currently required to report employer-sponsored health coverage for 2013.

Please note that this legislation is not a requirement to cover your employees, but rather a requirement to report the cost of coverage if you do provide it. If you don’t currently provide coverage, you will have nothing to report.

What do I have to report?

You will be required to report the amount of health care coverage paid both by you and by your employee on the Form W-2. Shortly we will be communicating with you to enable the setup of your employer costs to appropriately report coverage costs for 2013.

Where can I find more information?

To learn more about the new reporting requirements, visit the IRS website or talk to your Paycor Payroll Specialist.