Obamacare - W-2 Reporting Requirements



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More Clarification on IRS Regulations

I also apologize for any panic - but as stated, the information keeps changing which is why I suggested that you reach out to your Accountant. Just to share more light on the information I have seen - please take a look at this.

The IRS released Notice 2011-28 which provides guidance on the reporting of the cost of employer sponsored health insurance on employee's W-2s. The notice contains 31 questions and answers designed to help employers understand the reporting requirements. The announcement, and a copy of Notice 2011-28, can be found at http://www.irs.gov/newsroom/article/0..id-237870,00.html

In a significant development for many employers, the IRS has further delayed the W-2 reporting requirement for employers with less then 250 employees. The delay applies to any employer required to file fewer than 250 W-2s for the 2011 tax year. These employers will not be required to report health insurance costs on employees W-2s until the 2013 tax year (i.e. W-2s that are provided to employees early in 2014).

Employers who file 250 or more W-2s for tax year 2011 are still required to report health costs on W-2s beginning with the 2012 tax year.

Beverly Lang more than 4 years ago

Only applies if >250 employees

I think you did a grave disservice to your readers by failing to mention that if a company/organization has less then 250 employees, than this W-2 reporting is optional. After reading your article, I sent a panicked email to our payroll service, who in turn informed me of the 250-employee threshold. The vast majority of employers using QuickBooks have well under 250 employees.

Darryn Ambrose more than 4 years ago

Sorry for 'your panic', and thanks for pointing out the current threshold.

Our article discussed how cloudy these requirements seem to be due to continual changes by the Administration. Under something the IRS now calls "Transitional Relief" the current level appears to be 250 W-2 filings, previously the number was 150.

Because our article was not written exclusively to QuickBooks users, but any employer with payroll; and because these (and other related requirements) are continually changing, which was a key point of our article, we pointed out in our closing paragraph, that employers should in fact "seek the assistance of their Accountant or Tax Advisor" for the most current requirements concerning applicability to their company and health care plan.

But thanks again for pointing out the present W-2 threshold. And thanks for reading Intuitive Accountant.

insightfulaccountant.com more than 4 years ago

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