On January 3, 2012, the Internal Revenue Service issued Notice 2012-9 which provides clarifying and additional guidance on the requirement that employers report the cost of employer-provided health coverage on employees’ Forms W-2, as required under the Patient Protection and Affordable Care Act.
Under PPACA, group health plan sponsors are required to report the aggregate cost of applicable employer-sponsored coverage on employees’ Forms W-2. “Applicable employer-sponsored coverage” means coverage under any group health plan made available to the employee by an employer that is excludable from the employee’s gross income. Certain types of coverage are specifically excluded from the reporting requirements, such as coverage under a health reimbursement arrangement, amounts contributed to a health savings account and salary reduction contributions to a health flexible spending arrangement.
