Legal Alert – Updated Form W-2 Guidance

Legal Alert PDF

From the KT Health and Welfare Team:EB Alert Updated Form W-2 Guidance (1-9-2012)

Last week, the Internal Revenue Service issued updated rules with respect to informational reporting to employees of their employer-sponsored group health plan coverage. The informational reporting requirement was added by the Affordable Care Act. Under this new requirement, employers must provide to each employee who is receiving coverage from an employer-sponsored group health plan information regarding the cost of such coverage. Employers are required to comply with the informational reporting requirement beginning with 2012 Forms W-2 (i.e., forms required for the 2012 calendar year that employers must furnish to employees in January 2013). The updated guidance provides a number of clarifications and exemptions for employers. Perhaps the greatest change made by the updated guidance is that the cost of coverage relating to EAPs, wellness programs and on-site medical clinics no longer are reportable, but only if the employer does not charge a COBRA premium for such coverage. Please see the attached Legal Alert for additional details.

Kilpatrick Townsend & Stockton LLP
Mark L. Stember
Kilpatrick Townsend & Stockton LLP
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