Employers Get a Break
Employer's actually get a break on reporting the value of health coverage on W-2s for next year. The IRS has recently announced of their decision to NOT require it for 2011 W-2s that employers will file in January 2012, as was originally called for in the health care law. This delay will give firms additional time to make the necessary changes to their payroll and reporting systems. And as the law is currently written, the value of the coverage is shown on each employees W-2 and will not be included in their income. Congress supposedly added the reporting rule so employees will have a better appreciation of the amount that their employers spend on their health insurance coverage. They certainly wouldn't be interested in quantifying this amount to determine where they might be able to pick up some extra tax dollars!