Reminder: Form W-2 Cost of Coverage Reporting
Large employers must report the cost of group health coverage provided to employees on the Form W-2. The requirement applies to employers that filed 250 or more Forms W-2 in 2018. 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. Indian tribal governments, sponsors of self-funded church plans, and employers contributing to a multiemployer plan are exempt from the Form W-2 reporting requirement.
Our company will sell one of its divisions this year. What will happen to employees’ health FSA elections, which run on the calendar year and have already been elected for 2020?
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