IRS Issues Interim Relief Regarding W-2 Reporting
10/13/2010
The IRS issued Notice 2010-69 which provides interim relief to employers from the mandatory reporting of the cost of employer-sponsored group health plan coverage on employees' Form W-2s beginning with the 2011 tax year. Further guidance is expected before the end of 2010 regarding the use of COBRA rules to determine the value of coverage and other issues that need clarification before reporting becomes mandatory.
The new draft W-2 tax form was also released Oct. 12, 2010. The draft includes a new code (DD) that employers may use to report the cost of coverage under employer-sponsored group health plans in Box 12. The amount reported with Code DD are nontaxable.
Additional information can be found on the following websites:
- http://www.irs.gov/pub/irs-drop/n-2010-69.pdf
- http://www.irs.gov/pub/irs-utl/draft_w-2.pdf
- http://www.irs.gov/newsroom/article/0,,id=228881,00.html
If you have any questions or need additional information, please contact BPC at 217-355-2300 or 800-355-2350.
[Back]
