W-2 Health Costs Reporting is Optional

The IRS announced last week that it will defer the new requirement under Health Care Reform set to take place in 2011 that employers must report on W-2s the cost of health care coverage. The Treasury Dept and the IRS feel it is necessary to provide employers the time needed to make changes to payroll systems and internal procedures. Guidance from the IRS will be forthcoming. For 2001 the reporting of costs on w-2s is optional and a draft of that form exists for those employers wishing to do so. It can be found here: http://www.irs.gov/pub/irs-utl/draft_w-2.pdf

Steve Blewitt, GBA Vice President of IFS Benefits Steve is licensed in Life and Health in many states. Steve is actively involved in the National Association of Health Underwriters, National Association of Insurance and Financial Advisors, Delaware Society of Human Resource Management, Associated Builders and Contractors of Delaware, Delaware Contractors Association, Delaware State Chamber of Commerce, and New Castle County Chamber of Commerce.