IRS Delays Payroll Reporting of Health Insurance
On October 14, the IRS announced that the Health Care Reform Law's requirement that employers report the cost of health insurance on W-2's along with wages will be delayed by one year. Now, employers must report health insurance cost on the 2012 W-2s, which in most cases will be issued to employees in January 2013.
The announcement explained that “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 announcement also clarified that health insurance amounts listed on W-2s are not taxable as wages.
