MBS 30 Second Newsletter - Employer Paid Insurance on W-2 Delayed

W-2 Reporting of Premiums for 2011 is Optional

Starting with the 2011 tax year, the new health reform law includes a requirement that employer paid group insurance premium will be reported on employee W-2s. In order to give employers and service providers more time to modify their procedures, the IRS has delayed this requirement for a least a year. Reporting is now optional for 2011.

The W-2 requirement led many to assume that employer paid insurance would become taxable. The IRS said that including premium information on the W-2 is for information only and will help demonstrate to employees the value of their benefits.

Here's a link to their press release as well as a draft copy of the 2011 W-2 form

Thanks again and please call us with any questions.