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.
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