Interim Relief with Respect to Form W-2 Reporting of the Cost of Coverage of Group Health Insurance

The Patient Protection and Affordable Care Act of 2010 (March 23, 2010) provides generally that the aggregate cost of applicable employer sponsored coverage must be reported on Form W-2. The aggregate cost is to be determined under rules similar to the “applicable premium” under the rules providing for COBRA continuation coverage. This is effective for taxable years beginning January 1, 2011. 

Notice 2010-69 provides interim relief to employers with respect to reporting the cost of coverage under an employer-sponsored group health plan on Form W-2, Wage and Tax Statement. Specifically, this notice provides that reporting the cost of such coverage will not be mandatory for Forms W-2 issued for 2011. The Treasury Department and the IRS have determined that this relief is appropriate to provide employers with additional time to make any necessary changes to their payroll systems or procedures in preparation for compliance with the reporting requirement.

In light of this relief, AdvanStaff HR will not print the cost of coverage under an employer-sponsored group health plan on the 2011 Form W-2.