Changes for Your Health Plan: Do you want the good news or the bad news first? By Kimberly I. McCarthy, Esq.


The good news: IRS has delayed one of the thornier provisions of federal health reform that would affect all employers: changes to W-2 reporting requirements.

The bad news: Employers may well have to change the way they offer and pay for health insurance to their officers, executives, and owners – including through provisions in their employment or severance agreements, rather than through their health plans - in the next few months.

W-2 Reporting Change Delay

The federal health care reform law contains a provision that requires employers to include the cost of the employer-paid portion of health insurance on their employees’ 2011 W-2s. The change in reporting does not change how employer-provided health benefits are taxed, but instead is intended to show employees the value of health insurance as an employee benefit. While this is a worthwhile goal, changing W-2 reporting is an administratively difficult and potentially costly change to payroll processing.

Recently, the IRS announced that it will waive the new W-2 reporting requirement for one year. Now, health care cost information will have to be reported beginning with the 2012 W-2s, which are issued in 2013.

Expanded Nondiscrimination Rules

Many employers offer/pay for different benefits to different groups of employees.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Partridge Snow & Hahn LLP | Attorney Advertising

Written by:


Partridge Snow & Hahn LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.