What determines the valuation of the benefits for W-2 reporting?
A long-held congressional perspective is that employees do not recognize the true value of their health care benefits. Beginning in 2011 (for W-2 forms to be provided to employees in January 2012), employee W-2 forms must show the value of their employer-provided health coverage. Employers will be required to use the COBRA valuation methodology to determine their plan’s value. To be sure, employers will need to have a mechanism in place starting in January 2011 to be able to accumulate monthly values for employer-provided health coverage. Similarly, new requirements scheduled to go into effect in 2014 will have additional reporting and notification requirements, particularly with regard to health insurance coverage information for full-time employees. For instance, starting in 2014, employers will be required to provide a “minimum essential coverage” certification, the number and names of its full-time employees, information about health plan waiting periods, lowest cost health care op
Related Questions
- Does an employer have to report what they were paying for benefits on the actual payroll stubs along with the W-2’s? Also, which model notice needs to be the prevalent one?
- If the employee paid premiums on a post-tax basis, do I still need to report the disability benefits paid on a Form W-2 since it is non-taxable income?
- Who prepares W-2 Forms for Third Party Sick Pay benefits issued by Eastern Life & Health?
