Annually, large employers must report the aggregate cost of group health coverage provided to employees on Form W-2. The coverage must be reported on a calendar-year basis, regardless of the ERISA plan year or policy year. The reporting is intended for informational purposes for employees.
This ACA requirement applies to employers that filed 250 or more Form W-2s in the prior calendar year. Employer aggregation rules do not apply for this purpose. In other words, the number of Form W-2s is calculated separately without consideration of controlled groups. Self-insured plans that are not subject to COBRA (including church plans), multiemployer plans and Indian tribal governments are currently exempt from the Form W-2 reporting requirement.
To assist with the reporting, PPI Clients that had an active, fully-insured medical plan in 2022 and have access to view their PPI invoices online, can download their 2022 Cost of Coverage Report by logging into ppibenefits.com. The PPI report displays medical cost information by month, based on each member's medical plan enrollment.
For further information, view our ACA: Form W-2 Reporting Requirement publication.
PPI Benefit Solutions does not provide legal or tax advice. Compliance, regulatory and related content is for general informational purposes and is not guaranteed to be accurate or complete. You should consult an attorney or tax professional regarding the application or potential implications of laws, regulations or policies to your specific circumstances.
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