2013 W-2 Filing Requirements

The Affordable Care Act requires that employers who filed 250 or more federal payroll related tax forms for the 2012 tax year complete Box 12 on the 2013 W-2 (group health plan cost information). The federal payroll related tax forms used to determine this total include forms W-2, 1099, quarterly filed 941 and annual 940.

The Code related to employer sponsored group health costs in Box 12 is "DD" and the amount should include the amount paid by the employer and employee. The amount reflected in this box is informational only and not included in the employees taxable income.

The completion of Box 12, Code DD, is optional for employers who filed fewer than 250 Forms in the 2012 tax year.

For a detailed listing of Box 12 Codes see page 27 of the IRS General Instructions for Forms W-2 & W-3. For QuickBooks users, check out our online reference guide to making ACA reporting adjustments to your QuickBooks system.

Additional Medicare Tax
 

Beginning January 1, 2013 employers are required to withhold additional Medicare tax of .9% on any FICA wages paid to an employee in excess of $200,000, and continue to withhold it until the end of the calendar year. This tax is only deducted from the employee; there is no employer share of additional Medicare tax. The amount of this deduction will be included on the W-2 form in Box 6, Medicare Tax Withheld, combined with the 1.45% withheld for Medicare Taxes.

If you have questions about the applicability of any of these reporting requirements, please don't hesitate to call your Berntson Porter representative at 425.454.7990. We're here to help!