Get the free Form W-2 Reporting of Employer-Sponsored Health Coverage

The Affordable Care Act requires employers to report the cost of coverage under an employer-sponsored group health plan, which is for informational purposes only and provides employees useful information

How to fill out form w-2 reporting of

How to fill out Form W-2 Reporting of Employer-Sponsored Health Coverage

1. Obtain a blank Form W-2 from the IRS website or your accounting software.
2. In Box 1, report the employee's total wages, tips, and other compensation.
3. In Box 12, add a new entry with the code 'DD' to report the total cost of employer-sponsored health coverage.
4. Provide the health coverage cost for the entire year in Box 12 next to the 'DD' entry.
5. Fill out remaining boxes of the W-2 as required for wages, taxes withheld, and other pertinent information.
6. Make sure to double-check all entries for accuracy before submitting.
7. Distribute copies of the completed W-2 to the employees by the deadline, typically by January 31 of the following year.

Who needs Form W-2 Reporting of Employer-Sponsored Health Coverage?

1. Employers who provide health coverage to their employees and are required to report the cost of that coverage on the W-2 form.
2. Employees who receive Form W-2 from their employer to understand the health coverage benefits they received during the tax year.

People Also Ask about

Do you have to give W-2 employees benefits?

W-2 employees are considered "employees" rather than "contractors" or "freelancers" and are entitled to certain benefits and protections under US law, such as health insurance, paid time off, overtime, unemployment, and workers' compensation insurance.

What benefits are taxable on W-2?

The benefit's fair market value is added to the employee's gross income and reported on the employee's W-2 form, along with any applicable taxes withheld. Examples of taxable benefits include: Bonuses. Vacation, athletic club membership, or health resort expenses.

What benefits need to be reported on W-2?

Salary advances, fringe benefits, employee business expense reimbursements. Deferred Compensation deductions. Pre-Tax Benefit deductions (Health, Dental, Health Care Reimbursement, Dependent Care Reimbursement, Other Post-Employment Benefits - OPEB).

For pdfFiller’s FAQs

What is Form W-2 Reporting of Employer-Sponsored Health Coverage?

Form W-2 Reporting of Employer-Sponsored Health Coverage is a requirement for employers to report the total cost of employer-sponsored health coverage provided to employees. This information is included in Box 12 of Form W-2 and helps employees understand the benefits they are receiving.

Who is required to file Form W-2 Reporting of Employer-Sponsored Health Coverage?

Employers that provide health coverage to their employees are required to file Form W-2 Reporting of Employer-Sponsored Health Coverage. This requirement generally applies to all employers that are subject to the W-2 reporting rules.

How to fill out Form W-2 Reporting of Employer-Sponsored Health Coverage?

To fill out Form W-2 Reporting of Employer-Sponsored Health Coverage, employers need to determine the total cost of health coverage provided to each employee for the year and enter this amount in Box 12 using code 'DD.' Accurate record-keeping of health plans and premiums is essential for this reporting.

What is the purpose of Form W-2 Reporting of Employer-Sponsored Health Coverage?

The purpose of Form W-2 Reporting of Employer-Sponsored Health Coverage is to provide employees with information about the value of their health insurance benefits. It also assists the IRS in monitoring compliance with health care laws, such as the Affordable Care Act.

What information must be reported on Form W-2 Reporting of Employer-Sponsored Health Coverage?

Form W-2 Reporting of Employer-Sponsored Health Coverage must report the total cost of employer-sponsored health coverage, including both the portion paid by the employer and the portion paid by the employee, designated with code 'DD' in Box 12.