FAQ: Employer-Sponsored Coverage on W-2 Forms

Question: Under the Affordable Care Act (ACA), I read that employers are required to report the cost of employer-sponsored coverage on employee W-2 forms beginning with the 2012 tax year. Does this apply to my practice?

Answer: It depends on the size of your practice. Yes, a requirement of the ACA is that employers are required to start reporting the cost of their employer-sponsored health coverage on the W-2’s issued to employees for 2012. However, the requirement only applies to employers filing 250 or more W-2 forms for the preceding calendar year. Employers filing less than 250 W-2 forms are exempt and the reporting of the cost is optional at this time.

Additional information about the W-2 reporting requirement and a helpful guide can be found at GrantThornton.com


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