OUR THOUGHTS ON:

W-2's are coming and your employer-sponsored health coverage may be included!

Tax

By Jim Gilboy

Employees will receive their W-2’s by the end of January. From year to year employees probably do not notice many differences on the form. For many employees there will be an additional box filled with information that they have not seen in prior years. Look for an amount in Box 12 with the code DD that will represent you employer-sponsored health coverage if you work for a large employer.

Beginning with the 2012 tax year (for 2012 Forms W-2 issued in 2013), the Patient Protection and Affordable Care Act requires large employers to report on an employee's Form W-2 the cost of coverage they provided to that individual under an employer-sponsored group health plan. The IRS previously made reporting optional for 2011 for all employers. During 2012, the IRS also provided further relief by exempting small employers (employers that filed fewer than 250 Forms W-2 in the previous calendar year) from W-2 reporting for 2012 and later years, until further guidance is issued.

This reporting is currently for informational purposes only. These amounts will continue to be non-taxable fringe benefits but will be presented on the W-2 Box 12 with a code DD.

© 2013 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax related matter.

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Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2018 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

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