The Affordable Care Act provides that for tax years beginning after December 31, 2010, employers will be required to report the value of employer-provided health coverage on Forms W-2. 

Although the Forms W-2 are typically not due to the employees until January of the following calendar year (e.g. January 2012 for 2011 health coverage), it was expected that employers would need to update their payroll systems in January 2011 because former employees may request a Form W-2 for the calendar year of their termination at any time following termination.  Employers must respond to such requests within 30 days.  Recognizing the additional time employers need to make the necessary changes to their payroll systems and procedures, the Internal Revenue Service ( the "IRS") announced in Notice 2010-69 (issued October 12, 2010) that employers will not be required to report such cost of coverage for 2011.  Additionally, the IRS stated that it will be issuing additional guidance on these requirements before the end of 2010.

Nukk-Freeman & Cerra will update you as soon as this additional guidance is issued.  In the interim, if you have any questions regarding this matter or any other requirements of the Affordable Care Act, please feel free to contact Liza Hecht (lhecht@nfclegal.com), Christine Gottesman (cgottesman@nfclegal.com) or the Nukk-Freeman & Cerra attorney with whom you work.