04/03/2012 Will You Need to Report W-2 Healthcare Costs?
The IRS has issued guidance that helps answer questions employers have raised about the requirement to report the cost of workers’ health insurance on W-2s.
The healthcare reform law mandates that employers that issue more than 250 W-2 forms for tax year 2012 must include on those statements the cost of employees’ healthcare coverage.
BUT - there is relief for the small business! Employers issuing fewer than 250 W-2s are exempt from this rule until it comes time to pass out 2013 W-2s — and possibly longer.
• Employers can — but aren’t required to — report contributions made to health reimbursement arrangements
• The cost of services provided through employee assistance programs (EAP), wellness programs or on-site medical clinics is not required to be reported — unless the employer charges premiums for those services to COBRA beneficiaries
• Any coverage that is taxable to employees — like coverage for children over the ageof 26 — must be reported
• The cost of any supplemental health benefits — like cancer insurance — must be reported
• Contributions employees make to flexible spending accounts are not to be included, and
• The reporting requirement does not apply to Indian tribal governments.
(the IRS has a chart outlining what needs to be reported: http://www.irs.gov/newsroom/article/0,,id=254321,00.html)
One thing you may want to remind employees when they see this new figure on their W-2s: It’s for informational purposes only. The cost of coverage will remain untaxed.
01/25/2012 Standard Mileage Rates
No change for 2012
Despite rising fuel costs, the IRS announced that the standard mileage rate for 2012 will remain at 55.5 cents per mile. The mileage rate for medical and moving expenses is 23 cents per mile. Mileage for charitable activities remains at 14 cents per mile.
12/28/2011 We are back!
We have the phone system working
We have our phone system working again! We apologize for any inconvenience thsi may have caused.
