Cost of Employer-Sponsored Group Health Plan Coverage

The costof employer-sponsored group health plan coverage is required under S6051(a)(14) of the Code, applicable beginning with 2012 forms W-2.  Employers are not required to report the cost of health coverage on any forms required to be furnished to employees prior to January 2013.

In general, the amount reported should include both the portion paid by the employer and the portion paid by the employee.  The reporting is inbox12on the W-2 form using Code DD of the cost of employer-sponsored health coverage, and is for information only.  The amount reported with Code DD is not taxable.

Smaller employers that are required to file fewer than 250 2011 forms W-2 will not be subject to the reporting requirements.  This relief will continue until the issuance of further guidance from the Treasury Dept. and the IRS.

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