The ACA requires large employers that sponsor fully insured or self-insured (including level funded) group health plans to report information to the IRS annually via Form W-2 regarding the cost of health coverage provided to employees during the prior calendar year. The reporting is intended for informational purposes.
The coverage must be reported on a calendar-year basis, regardless of the ERISA plan year or policy year. Specifically, employers must file copies of their annual Forms W-2 with the Social Security Administration by January 31 and provide applicable copies to their employees by the same deadline.
Currently, this ACA requirement applies to employers that filed 250 or more Forms W-2 in the prior calendar year. Employer aggregation rules do not apply for this purpose. In other words, the number of Forms W-2 is calculated separately without consideration of controlled groups. Self-insured plans that are not subject to COBRA (including church plans), multi-employer plans, and Indian tribal governments are exempt from the Form W-2 reporting requirement.
For further information, please download a copy of the PPI publication ACA: Form W-2 Reporting Requirement.
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.
Sign up to have it delivered straight to your inbox.
Sign up