Employers that would like to report how much they spend on group health coverage for each employee will have a chance to do so in 2011.
The Internal Revenue Service (IRS), an arm of the U.S. Treasury Department, has decided to include health expense codes that employers can use, but do not have to use, in the draft version of the 2011 W-2 wage tax withholding form.
Section 9002 of the Patient Protection and Affordable Care Act (PPACA), a component of the Affordable Care Act, has added a provision to the Internal Revenue Code, Section 6051(a)(14), that requires employers to report the cost of employer-sponsored health coverage on employees’ W-2s starting with taxable years beginning on or after Jan. 1, 2011.
The Treasury Department and the IRS have decided to postpone implementation of the provision to give employers more time to change payroll systems and procedures to prepare for the new reporting requirement, officials say.
“The IRS will be publishing guidance on the new requirement later this year,” officials say.