Employer W-2 Reporting Responsibilities

• Posted on July 6, 2010
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Long Island CPA Firm Offering Tax and Financial Advice

Beginning in tax year 2012 (was originally scheduled to start for 2011 but has been delayed), employers will be required to disclose the aggregate cost of the benefit provided by them by the employer-sponsored health insurance coverage on the employee's annual Form W-2.  The amount included in the W-2 does not include contributions to Archer MSAs, Health Savings Accounts or flexible spending arrangements.

Don’t Read Too Much Into This!  This is simply to provide an employee with the dollar value of the benefits being paid for by the employer.  There have been rumors floating around that contributions to an employer’s qualified health plan would no longer be excludable from income. This is not true! If it was excludable before, it is still excludable!