Please read the below important announcement with details regarding the individual mandate and its tax implications, along with details on W-2 reporting.

As always, please contact our office should you have additional questions.

As you may know, the Individual Mandate was recently upheld by the U.S. Supreme Court. This provision, which requires every individual to obtain "essential minimum coverage" or pay a tax penalty beginning January 1, 2014, has tax implications for families and individuals. 

 

Here is what you need to know about individual mandates and tax implications.

The Affordable Care Act requires employers to report the cost of coverage under an employer-sponsored group health plan. Reporting the cost does not mean that the coverage is taxable; the value of the employer's excludable contribution to health coverage continues to be excludable from an employee's income and is not taxable. This reporting is for informational purposes only.

 

This chart illustrates the types of coverage that employers must report on the Form W-2. 

 

For more information, please read the questions and answers provided by the IRS.

We understand that the decision by the Court to uphold PPACA comes with many questions from you as employers as well as consumers. Providing our clients with quality products and service for their group benefit plans is still, and continues to be, the number-one priority for Shirazi Benefits.