IRS Issue Notice On W-2 Health Care

The IRS recently issued Notice 2010-69, which provides that the W-2 reporting of the cost of employees’ health coverage will be “voluntary”, rather than mandatory, for 2011. President Obama’s Health Care Act originally would have required employers to report the total cost of health coverage on employees’ W-2 forms for 2011.

The IRS expects to issue additional guidance on the reporting requirements before the end of 2010, however it recognizes that employers may need additional time to modify their payroll systems to comply with the new reporting requirement. Based on Notice 2010-69 employers will not face a penalty if they do not report the cost of employer-provided health coverage on employees’ W-2s for 2011. ◆