Client Alert from the Labor and Employment Group - October 2010
IRS Form W-2 Reporting for Employer-Provided
Health Care Delayed
By Jeremy J. Sharp
For employers working diligently to comply with numerous healthcare reform requirements under the Patient Protection and Affordable Care Act ("PPACA"), the IRS provided some welcome news this week. That is, IRS Form W-2 reporting for the value of employer-provided health care coverage, which was scheduled to begin in January, 2011, has been deferred until 2012 and made optional for 2011.
The IRS announced the deferral of the W-2 reporting requirement on October 12, 2010, in Notice 2010-69, which provides that employers will not be required to report the cost of group health plan coverage on Form W-2 for 2011. The Notice included a comment that Treasury and IRS expect to issue guidance on the reporting requirement by the end of the year. On the laundry list of year-end PPACA compliance items for employers, revising payroll practices to address new W-2 reporting requirements can safely be checked off for the time being.
For more information directly from the IRS, including a link to Notice 2010-69, go to: http://www.irs.gov/newsroom/article/0,,id=220809,00.html
The information in this Client Alert is a summary of often complex legal issues and may not cover all of the "fine points" of a specific situation or court jurisdiction. Accordingly, it is not intended to be legal advice, which should always be obtained in consultation with an attorney. The lawyers in Walter & Haverfield's Labor and Employment Law Group will be pleased to assist with any questions about this new development in the law. |
