If you have employees in your business you may be subject to
a new provision as part of the Health Care Reform Law for 2012. This new
provision requires certain employers to report additional information on their
W-2’s. Employers will now have to report the total value of an individual
employee’s health benefits on their Form W-2.
For the tax year 2012, this applies to employers that filed
250 or more Form W-2’s for the previous tax year. This does not apply to employers filing less than 250 Form W-2’s.
These health care costs are only informational and are not taxable to the employer or employee. The cost of the health coverage will be reported in box 12 of the W-2 and will have the code “DD”.
Please visit our website, www.steveveseycpa.com/blog, for further information. As always, consult your tax advisor on all the above information.