Can you provide any information on the PPACA requirement to show the value of employer-provided health coverage on IRS Form W-2?
There have been no recent developments or federal guidance related to health care reporting on the W-2. In an effort to make the cost of employer-sponsored health coverage more transparent to employees, PPACA requires an employer to disclose on an employee’s Form W-2 for 2011 the “value” of an employee’s health coverage sponsored by the employer. The requirement is for information reporting only; there is no impact to employee earnings or tax withholding. While the law requires employers to use the rules for COBRA continuation coverage in determining the value of employer-sponsored health coverage, it is not yet clear whether actual premium costs – or a more complex actuarial valuation of benefit costs – will be defined as the valuation method for W-2 reporting. The U.S. Department of Treasury has been working on new COBRA valuation methodologies to quantify benefit costs. It’s likely that the IRS would prefer to complete the new COBRA guidance as a basis for the PPACA W-2 reporting re
