As part of the Affordable Care Act (ACA), employers are required to report the cost of health benefits coverage under an employer-sponsored group health plan. This applies to both self-funded (ASO) and fully insured employer groups.
Beginning in January, 2012, employers that were required to file at least 250 W-2 forms in 2011, were required to start tracking the total cost of health care coverage for tax year 2012. This information will be reported to the Internal Revenue Service on employee W-2 forms that will be issued in early 2013. This reporting is for informational purposes only and does not affect an employee’s tax liability.
However, for small groups (employers that were required to file fewer than 250 W-2 forms in 2011), reporting will continue to be optional for the 2012 tax year; mandatory for the 2013 tax year.