2011 Changes to Form W-2
Written on July 25, 2010
Clients have been talking a lot about a change, which is a requirement for businesses to report the value of employer-provided health care benefits on their employees’ Form W-2. The requirement will take effect in 2011 and be reported in Forms W-2 issued in early 2012.
Notwithstanding some rumors to the contrary, the value reported will not be considered taxable income. The benefits’ value statement will not have any effect on an individual’s federal income tax. The Form W-2 reporting requirement will help IRS verify that people have health care coverage, because the law will eventually penalize people who are not insured.
Filed in: tax tips (fed).
