W-2 Reporting of Employer-Sponsored Health Coverage is Optional for Small Businesses in 2012

Note: None of this should be taken as legal or tax advice.

Today, the IRS issued interim guidance to small businesses on the new annual W-2 reporting requirements.   The Affordable Care Act requires all employers to report the cost of employer-provided health care coverage on the Form W-2.

Recent guidance made this requirement optional for all employers for 2011. Today's guidance provides further relief for smaller employers (those with less than 250 W-2s to file) by making this requirement optional for them in 2012.

The IRS emphasized that this new reporting to employees is for information purposes only, and does not cause employer-provided health coverage to become taxable.

The IRS is also requesting comments on this interim guidance.

Click here to read the interim guidance from the IRS.