IRS POSTPONES REQUIREMENT FOR
W-2 REPORTING ON 2011
HEALTH COVERAGE COSTS.

Last week, the Obama Administration delayed the implementation of the health care reform provision requiring employers to report the cost of health insurance coverage on employees' W-2 tax forms starting with the 2011 tax year.  It was determined that relief was needed to give employers additional time to make necessary changes to payroll systems and prepare for the reporting requirements which will now begin in 2012.  New guidance on the reporting requirements is expected later this year.

The Internal Revenue Service (IRS) has issued a draft Form W-2  for 2011 which includes the codes that employers may use to report the cost of coverage under an employer-sponsored group health plan, even though it is not required.  The IRS is also continuing to stress that the amounts reported are NOT taxable.  The intended goal of the reporting requirements is for information gathering and to provide employees with greater transparency into overall health care costs.   

Unison will continue to keep you up to date as additional information becomes available pertaining to the W-2 reporting requirements.  If you have any immediate questions concerning your health plan, please contact your Unison Employee Benefits Consultant.  

Explore our new website including our Health Care Reform Resource Center at  WWW.UNISONINC.COM

EMAIL US  your health care reform questions.