Five Things You Need to Know:
1. All employers, including small employers, must report the cost of employer-sponsored coverage beginning with the 2013 W-2s.*
2. Nothing about the reporting of the health care on the W-2 causes health insurance that is excludable to become taxable to the employee.
3. The cost of employer-sponsored coverage is included in box 12 of the W-2 using code DD.
4. More information about what must be included in this amount is available in Question and Answer format at www.IRS.gov Keyword: Employer Provided Health Coverage.
5. Conover & Conover, CPAs, PSC, is here to help you determine how to apply this law to your W-2 reporting.
*This requirement has been put on hold but could change. For an update, please see W-2 Reporting requirements for Health Care Costs at
CIRCULAR 230 DISCLOSURE: To ensure compliance with the requirements imposed by the IRS, we inform you that, to the extent this communication addresses any tax matter, it was not written to be (and may not be) relied upon to (i) avoid tax-related penalties imposed under the Internal Revenue Code, or (ii) promote, market or recommend to another party any transaction or matter addressed herein. Likewise, nothing herein is intended to convey an expression of an opinion as to the likelihood a tax position would ultimately prevail if challenged by the IRS.