BTerrell Group Blog

New W-2 Reporting Requirement for Employers under ACA Starts in 2012

Posted by Meredith Gooch on Fri, Jan 13, 2012

As part of the Affordable Care Act (ACA), employers are required to report the cost of health benefits coverage under an employer-sponsored group health plan. This applies to both self-funded (ASO) and fully insured employer groups.

Originally slated to start with the 2011 tax year, the Internal Revenue Service (IRS) determined in the fall of 2010 that employers needed additional time to update their payroll systems, so it made reporting optional for the 2011 tax year. Reporting will be required starting with the 2012 tax year, for which reporting begins in January 2013. For small groups (employers that issue fewer than 250 W-2 forms), however, reporting will continue to be optional for the 2012 tax year and will only become mandatory for the 2013 tax year (for which reporting begins January 2014).

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Tags: sage erp accpac, ACA, New W-2 Requirements 2012