Form W-2 Guidance

The Affordable Care Act (ACA) requires employers report the aggregate cost of employer-sponsored health coverage on employees’ Form W-2s. The reporting is for informational purposes to show employees the value of their health care benefits.

The IRS website provides specific guidance and a chart depicting the who, what, when, where and how of reporting health care benefit value. For instance, the reporting requirement is optional for employers filing fewer than 250 Form W-2s, until further IRS guidance is issued. Health Alliance recommends employers consult with a trusted tax professional regarding this and any other tax matter.