Summary
Requires employers to report on employees’ annual W-2 statements the cost of coverage under an employer-sponsored group plan. Effective as of taxable years beginning after December 31, 2010.
Implementation Status
The IRS has a website on which it provides an overview of this provision and related information, such as a chart of W-2 reporting of employer-sponsored coverage requirements by coverage type. An IRS Q&A provides further information on the implementation of this section.
Specific IRS guidance is available at Notice 2010-69, making the reporting requirement optional for all employers for 2011 W-2 forms; Notice 2011-28, providing additional transitional relief for certain smaller employers; and Notice 2012-9, reaffirming and clarifying earlier guidance for employers subject to the reporting requirement for 2012 W-2s.
On Jan. 22, 2014 the IRS posted information noting that while employers generally are eligible for transition relief until final guidance is released (details), employer-sponsored coverage costs may appear on 2013 W-2s, as stipulated by the ACA.
Statutory Text
SEC. 9002. INCLUSION OF COST OF EMPLOYER-SPONSORED HEALTH
COVERAGE ON W–2.
(a) IN GENERAL.—Section 6051(a) of the Internal Revenue Code
of 1986 (relating to receipts for employees) is amended by striking
‘‘and’’ at the end of paragraph (12), by striking the period at the
end of paragraph (13) and inserting ‘‘, and’’, and by adding after
paragraph (13) the following new paragraph:
‘‘(14) the aggregate cost (determined under rules similar to
the rules of section 4980B(f)(4)) of applicable employer-sponsored
coverage (as defined in section 4980I(d)(1)), except that
this paragraph shall not apply to—
‘‘(A) coverage to which paragraphs (11) and (12) apply,
or
‘‘(B) the amount of any salary reduction contributions
to a flexible spending arrangement (within the meaning of
section 125).’’.
(b) EFFECTIVE DATE.—The amendments made by this section
shall apply to taxable years beginning after December 31, 2010.