Last week, the Internal Revenue Service issued new guidance for employers detailing how PPACA’s requirement that employer provide employees with informational reporting to their employees about the cost of their group health insurance coverage on W-2 statements must be fulfilled. The new guidance supersedes and expands upon guidance issued by the IRS on this topic earlier this year.
Significantly, the notice adds new seven new questions and answers for employers, which may be helpful to group plan sponsors implementing the reporting requirements for 2012. In addition, the notice clarifies several of the old questions and answers for employers and republishes the questions and answers that remain unchanged from the old guidance.
The new notice requirements will apply until additional guidance is issued. Many of the new rules are characterized as "transitional relief" and may change in the future as final regulations are developed. However, the guidance specifies that any future changes will be prospective, meaning that they will not be in force right away, and that any new requirements will not be retroactively enforced.
To help you better understand the W-2 requirements, NAHU will be hosting a free webinar on the new requirements in the next few weeks. Watch your e-mail for a registration announcement.