Posted on January 11, 2013

There’s currently some uncertainty around U.S. health care reform. What are the implications for businesses? For employer reporting and recordkeeping? For regulatory compliance? Below are three of the most frequently asked questions received by CPA Care.

What are the W-2 health care reporting requirements for employers?

Under the current interim guidance from the IRS, only employers who filed 250 or more W-2s in 2012 will be required to report the total cost of coverage—the employee cost plus the employer cost—on their 2013 W-2s.

Do small businesses have to provide insurance to their employees?

Beginning in 2014, employers with more than 50 full-time equivalent employees will be required to offer affordable health coverage that meets minimum standards.

What if the employer decides not to provide insurance?

If employers with more than 50 full-time equivalent employees do not provide this coverage, they will be subject to a non-tax-deductible penalty of $2,000 per employee.

There are still many details that have yet to be made clear, but we do know that employers across the nation will want to look at their current costs and weigh their options. This is where Custom Web Reporting can help your clients analyze their benefits costs, determine which of their employees are full-time and part-time equivalents and ultimately make an informed decision about health care coverage.

If you need help with a report or an employee determination, give CPA Care a call.

Sources: Bureau of National Affairs, Paytech Magazine