Beginning with 2012, large employers (i.e., those filing 250 or more W-2s for the previous year) are required to provide information reporting on the costs of their employees’ group health plan coverage. Smaller employers (i.e., those filing less than 250 W-2s for the previous year) will not be required to report the costs of health coverage until additional guidance is issued by IRS. The reporting requirement will not cause employer healthcare coverage to become taxable to employees. The IRS, in Notice 2011-28, recently provided guidance to employers on how to determine the reportable costs, as well as some transitional relief from the reporting requirements.
