Get access to the exclusive HR Resources you need to succeed in 2018.
Sign up for free email newsletters and get more SHRM content delivered to your inbox.
Is your employee handbook keeping up with the changing world of work? With SHRM's Employee Handbook Builder get peace of mind that your handbook is up-to-date.
Build competencies, establish credibility and advance your career—while earning PDCs—at SHRM Seminars in 14 cities across the U.S. this fall.
Gain the skills you need to rise to the next level in your career. Jon us at SHRM's Leadership Development Forum, October 2-3 in Boston.
Requirement made optional for 2011
Members may download one copy of our sample forms and templates for your personal use within your organization. Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organization’s culture, industry, and practices. Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRM’s permission. To request permission for specific items, click on the “reuse permissions” button on the page where you find the item.
The IRS issued a
draft Form W-2for 2011, which employers use to report wages and employee tax withholding. The IRS also announced that it will
defer the new requirement for employers to report the cost of coverage under an employer-sponsored group health plan, making that reporting by employers optional in 2011.
The draft Form W-2 includes the codes that employers may use to report the cost of coverage under an employer-sponsored group health plan. The Treasury Department and the IRS have determined that this relief is necessary to provide employers the time they need to make changes to their payroll systems or procedures in preparation for compliance with the new reporting requirement. The IRS will be publishing guidance on the new requirement later this year.
Although reporting the cost of coverage will be optional with respect to 2011, the IRS continues to stress that the amounts reportable are not taxable.
"On Oct. 12, 2010, the IRS delayed implementation of the requirement to report the value of health insurance on employees' IRS Form W-2 for one year. Reporting of these amounts will now first be required for W-2s issued for 2012.
"The IRS stated it delayed the requirement to give employers more time to update their payroll systems and procedures. It was also likely delayed because the IRS has not yet issued guidance regarding how the aggregate value of the coverage is to be calculated.
"The aggregate value of the coverage is supposed to be determined under rules similar to the rules used to calculate the COBRA premium for the coverage.The IRS is currently in the process of developing and issuing regulations regarding how to calculate the COBRA premium, and it makes little sense to implement the reporting requirement before the COBRA premium rules are issued.
"The IRS also issued a draft updated Form W-2 for 2011. The instructions to the draft form state that any employer wanting to report the value of health insurance on a 2011 Form W-2 can do so in Box 12, using Code DD.
"The IRS said it would issue further guidance on this reporting requirement before the end of the year."
You have successfully saved this page as a bookmark.
Please confirm that you want to proceed with deleting bookmark.
You have successfully removed bookmark.
Please log in as a SHRM member before saving bookmarks.
Please sign in as a SHRM member before saving bookmarks.
Please purchase a SHRM membership before saving bookmarks.
An error has occurred
CA Resources at Your Fingertips
SHRM’s HR Vendor Directory contains over 10,000 companies