Written by: Gene Smith

The Affordable Care Act has many layers of implications, rules and reporting requirements for the employer. If your business has an employer sponsored group health plan, there are W-2 reporting requirements you need to be familiar with.

Generally speaking, the cost of an employee’s health care benefits has to be reported in box 12 of Form W-2 with code DD to identify the amount. While employers with fewer than 250 W-2’s are not required to report this until 2013, we would suggest you consider doing it this year so that you have systems in place to be compliant for 2013.

The IRS has a website that addresses frequently asked questions that we have provided with this article. If you have any questions about what your business needs to do, please contact our office and one of our professionals will be able to assist you.