During March and April of each year, I tend to be a little grumpy. After sorting through receipts, balancing books, and juggling fancy software programs, all in the effort of settling up with Uncle Sam, who wouldn’t be a little irritable? When I review my list of colleagues, friends, and neighbors, the only ones who seem to be smitten about preparing tax returns are the tax preparers themselves.
With the recent announcement of the Patient Protection and Affordable Care Act being upheld, I’m grumpy again because I have to start working on my W-2 reporting now – in the summer! I should be reveling in poolside possibilities, but instead my head is swimming. I’m sure you’ve read all about W-2 reporting by now. The purpose being that of helping the Internal Revenue Service (IRS) identify who has coverage (and who does not), plus preparation for the Cadillac tax on high roller plans in the future.
We’re a mid-size employer, so we don’t pass under the radar of less than 250 W-2s issued. We’re also not a tribally chartered corporation owned by a recognized Indian tribal government. Darn. Too bad we’re not exempt from COBRA or part of a multiemployer plan either. I’m actually going to have to figure this out. Now I’m feeling crabby.
At first glance, you wouldn’t think that this should be complicated. “Just report the annual COBRA value,” I say to myself. But then my mind does the dunk, the dive, and some underwater aerobics. Is your workforce constant? Mine changes. Do your enrollees stay on the same plan all year long? Mine don’t because they get married, have kids, and experience other life events – it’s called life. So now I have a moving target if you will – to try and snapshot varying values that change month-to-month on each person individually. We have new hires join our organization, and others who sadly leave. Oh boy, another complex calculation. This is going to be about as fun as itemizing my deductions.
Now I have to put on my sun hat and glasses because I’m heading into a serious ultraviolet ray zone. Do you happen to have a Human Resources Information System (HRIS) that tends to be testy? If you do, this may really end up being quite a feat to accomplish. For the long-term, I might need to figure out new ways to capture this data. This might mean an addition to an electronic data interface (EDI) file. Have you ever worked with EDI files before? Have you ever tried to decipher the tax code? They aren’t as easy as they look. I wonder if the person who created EDI files ever worked for the IRS. Curiously, I just noticed that the letters of IRS are in included in HRIS. Could this be a coincidence? Okay, I’m rambling now but taxes have that effect on me. Sorry.
You can find the W-2 Reporting Requirement on the IRS website by following this link:
I’ve got a value-pack of sunscreen on shelf. I’ve armed myself with a fruity cool drink and my personal tax return doesn’t have to be worked on for another eight months. Grumpy or not, I will get this done!
How are you coping with W-2 reporting? Share your thoughts in the comments.
Karrie Andes, SPHR, CBP, is the senior benefits manager for PGi and a savvy self-funding healthcare gal. She’s located in the Kansas City area and can be reached at
