Employee Benefits-IRS Provides Relief For W-2 Reporting Of The Cost Of Coverage Of Group Health Insurance

In Notice 2010-69 (the “Notice”), the Internal Revenue Service (“IRS”) has provided interim relief to employers on the requirement that the cost of coverage under an employer-sponsored group health plan be reported on Form W-2.

By way of background, Section 6051(a)(14) was added to the Code by the Affordable Care Act (signed into law on March 23, 2010). Section 6051(a)(14) provides, generally, that the aggregate cost of group health care coverage must be reported on Form W-2. This Section is effective for taxable years beginning on or after January 1, 2011.
To provide relief to employers, the Notice says that this reporting requirement need not be met for a Form W-2 issued for 2011. Thus, an employer will not be subject to any penalties for the failure to meet this reporting requirement on a Form W-2 issued for that year.