The IRS has issued Notice 2012-9 to provide new guidance (and modify prior guidance) on employers’ obligations to report health coverage costs on Form W-2.

Background

As part of health care reform, Congress added Section 6051(a)(14) to the Internal Revenue Code to require that employers report the cost of health coverage provided to employees. This information is to be reported on Form W-2. The IRS previously issued Notice 2011-28, which provided interim guidance and solicited comments about the new requirement. Last week the IRS issued Notice 2012-9, which clarifies certain aspects of the prior guidance, responds to comments submitted to the IRS, and effectively replaces and supersedes Notice 2011-28.