What’s that new number on your W-2?

You may see a something new on your W-2 this year; employer health plan costs. The Patient Protection and Affordable Act  requires many employers to report the cost of qualifying employer-sponsored health coverage. The new requirement is optional for the 2011 W-2’s (physically issued in January 2012) as employers make modifications to their payroll systems to accomodate the addition information. Starting with 2012 W-2's (physically issued in January 2013) most employeers in which issue in excess of 250 W-2's annually will be required to provide such information.

The costs on the W-2 encompass the costs to the employer for coverage under any group health plan that the employer makes available to the employee. The reporting by the employer provides the US Government to ensure the minimum health care costs are being expended by the employer in accordance with the Act. The amounts are not included in employees' gross income. These costs disclosed exclude long-term care, coverage under separate dental and vision plans, disability insurance, HSA plans, etc. The costs disclosed will include both the employee and employer portion paid.

For additional complimentary information regarding this item or other questions you may have please call one of dbbmckennon‘s offices located in Southern California or contact here.