Beginning in 2012, employers will be required to report the cost of health insurance premiums as mandated by the Affordable Care Act.
Employers who have more than 250 W-2’s to report must comply with the disclosure requirements for 2012.
Employers with less than 250 W-2’s to report must comply by 2013.
Amounts to be Reported
The amounts to be disclosed include amounts paid by the employer as well as the employee.
The amount reported is for informational purposes only and is not a taxable item.
Type of Coverage Required to be Reported
1. Medical plans
2. Prescription drug plans
3. Employee assistance plans (required only if the employer charges a COBRA premium)
4. Wellness programs (required only if the employer charges a COBRA premium)
5. On-site clinics (required only if the employer charges a COBRA premium)
Types of Coverage Not Required to be Reported
1. Long-term care and HIPAA excluded benefit plans
2. Dental and vision plan costs
3. Archer Medical Savings Account or Health Savings Account contributions
4. Employee salary reduction election for a Flexible Spending Account
5. Employer contributions to a Health Reimbursement Account
As always, please feel free to contact us or your health insurance carrier if you have any questions.