Applicable Large Employers (ALEs) filing 250 or more W-2’s must report the aggregate cost of health coverage, per regulations under the Affordable Care Act (ACA).
This reporting requirement is optional for businesses filing less than 250 Forms W-2, until the IRS release further guidance.
The health care amounts reported on the W-2 are informational, as the value of the coverage is not taxable to the employee, nor should it be included as income. This information regarding the cost of coverage will be reported in Box 12, using code DD.
Form W-2 Reporting of Employer-Sponsored Health Coverage
| Coverage Type | Report | Do Not Report | Optional |
| Major medical | X | ||
| Dental or vision plan not integrated into another medical or health plan | X | ||
| Dental or vision plan which gives the choice of declining or electing and paying an additional premium | X | ||
| Health FSA funded solely by salary reduction amounts | X | ||
| HRA contributions | X | ||
| HSA contributions (employer or employee) | X | ||
| Employee Assistance Plan (EAP) providing applicable employer-sponsored health care coverage | Required if employer charges a COBRA premium | Optional if employer does not charge a COBRA premium | |
| Wellness programs providing applicable employer-sponsored health care coverage | Required if employer charges a COBRA premium | Optional if employer does not charge a COBRA premium |
If you have any questions about this reporting requirement, please ask your dedicated Austin Benefits Group Account Manager. Check out more of our articles on Health Care Reform and Compliance.
