IRS Introduces New W-2 Reporting Requirements

Posted by on Jan 30, 2013 in Broker Development, Human Resources | 0 comments

IRS Introduces New W-2 Reporting Requirements


Beginning with the 2013 batch of W-2 forms, the Internal Revenue Service is introducing a new series of reporting requirements.

Pursuant to the Patient Protection and Affordable Care Act of 2010, employers must include the following information in Box 12 on their W-2 forms to the employee and to the IRS:

  • Major medical plan coverage
  • Flexible Savings Account values for the plan year (in excess of Section 125 salary reduction contributions).
  • Employer-funded or salary-reduction plans from hospital indemnity plans
  • Coverage for domestic partners (if included in gross income)
  • If you charge a COBRA premium, you must include employee assistance plans,  on-site medical clinics or wellness programs.

Employers may but are not required to report these items:

  • Stand-alone dental or vision plans
  • Voluntary benefit dental or vision plans
  • Employer-made Health Reimbursement Arrangement contributions
  • Multi-employer plans
  • Self-funded plans exempt from COBRA
  • Employee Assistance Programs, on-site clinics or wellness programs if you do not charge a COBRA premium.

Do not report the following items:

  • Salary-reduction contributions to FSAs
  • HSA contributions
  • Archer MSA contributions
  • After-tax hospital indemnity or specified illness premoiums.
  • Military health insurance programs (i.e., TRICARE)
  • Federally-recognized Native American tribal government plans, including corporate subsidiaries wholly owned by tribal governments.
  • Disability or accident income
  • Long term care insurance benefits
  • Liability insurance
  • Workers compensation
  • Automobile medical payment insurance
  • Credit-only insurance
  • Excess reimbursement to highly-compensated individuals
  • Payment or reimbursement of health insurance premiums for 2 percent shareholder/employees.

Important: There has been a change in the regulatory regime for 2013. Due to delays in the implementation of the Affordable Care Act, and continued uncertainty about the rollout of the state and federal health insurance exchanges, regulators have delayed indefinitely the requirement that employers provide notice to their employees about the existence of the exchanges by March 1 of this year. Employers have no requirement to do so at this time.