The Internal Revenue Service (IRS) is providing a one-year delay before employers are required to report the dollar amount of the health insurance premiums paid for each employee on their W-2s. The amount will be listed as a nontaxable employer fringe benefit.
Under the health-care law, the reporting requirement was to take effect in 2011. It is now optional for next year but required in 2012. The IRS wants to make sure companies have enough time to adjust their payroll systems. A main purpose of the reporting requirement is to make workers more aware of health-care costs.
For more information, contact Stuart Gosswein at email@example.com.