Important ACA W-2 Reporting Requirements

faviconApplicable 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 TypeReportDo Not ReportOptional
Major medicalX
Dental or vision plan not integrated into another medical or health planX
Dental or vision plan which gives the choice of declining or electing and paying an additional premiumX
Health FSA funded solely by salary reduction amountsX
HRA contributionsX
HSA contributions (employer or employee)X
Employee Assistance Plan (EAP) providing applicable employer-sponsored health care coverageRequired if employer charges a COBRA premiumOptional if employer does not charge a COBRA premium
Wellness programs providing applicable employer-sponsored health care coverageRequired if employer charges a COBRA premiumOptional 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.