CBG BENEFITS: EMPLOYEE BENEFITS AND HR SOLUTIONS For more information, please contact our team: • Web: http://CBGBenefits.com • Phone: 877-EE-Bnfts • Email: [email protected] CBG Benefits Presents: W-2 Reporting Requirements Under Health Care Reform
Nov 15, 2014
CBG BENEFITS: EMPLOYEE BENEFITS AND HR SOLUTIONS
For more information, please contact our team:
• Web: http://CBGBenefits.com• Phone: 877-EE-Bnfts• Email: [email protected]
CBG Benefits Presents:
W-2 Reporting Requirements Under Health Care Reform
CBG Benefits | Copyright 2012 | http://CBGBenefits.com
What’s Changed?
The laws within Health Care Reform present a new reporting requirement for employers.
CBG Benefits | Copyright 2012 | http://CBGBenefits.com
Tax Rules Stay the Same
• Requirement impacts reporting only
• Provides employee with information about cost of coverage
CBG Benefits | Copyright 2012 | http://CBGBenefits.com
Compliance Dates
• Reporting delayed until 2013 for small employers (or until further guidance is issued)
• Reporting is mandatory in 2012 for large employers (W-2 forms will be provided in Jan. 2013)
CBG Benefits | Copyright 2012 | http://CBGBenefits.com
Information to Report
• Total cost of employer-sponsored health coverage• Group health plan coverage• Total cost = employer portion + employee portion• Report in box 12 with code “DD”
CBG Benefits | Copyright 2012 | http://CBGBenefits.com
Most Employers Must Comply
• Employers that provide applicable health coverage• Includes:
• Government entities• Churches• Religious organizations
• Some exceptions exist
CBG Benefits | Copyright 2012 | http://CBGBenefits.com
Coverage Exceptions
• Long-term care• HIPAA Excepted benefits• HSA/Archer MSA
contributions
• Health FSA salary reductions
• After-tax coverage• Military benefits
CBG Benefits | Copyright 2012 | http://CBGBenefits.com
Optional Coverage: What Employers May Report
• Multiemployer plan coverage
• Health Reimbursement Arrangements (HRAs)
• Separate dental and vision plans not in another plan
• Self-insured plans of employers not subject to COBRA
• EAPs, wellness program or on-site medical clinic if no COBRA premiums
CBG Benefits | Copyright 2012 | http://CBGBenefits.com
Determining Cost of Coverage
• Include employer & employee portion
• Calculation methods:• COBRA applicable
premium method• Premium charged
method• Modified COBRA
premium method
CBG Benefits | Copyright 2012 | http://CBGBenefits.com
COBRA Applicable Premium Method
• Cost of coverage = COBRA applicable premium• Does not include 2 percent administrative fee
CBG Benefits | Copyright 2012 | http://CBGBenefits.com
Premium Charged Method
• Can use for insured plans
• Cost of coverage = premium charged by insurer
• Use premium for each employee’s coverage
CBG Benefits | Copyright 2012 | http://CBGBenefits.com
W-2 Not Required?
• New rule does not create new obligations to issue W-2 form
• Employers do not have to issue a W-2 if it wasn’t otherwise required.
CBG Benefits | Copyright 2012 | http://CBGBenefits.com
Terminated Employees
• Use reasonable, consistent method to report coverage
• Exception for terminated employees who request W-2s before the end of the year
CBG Benefits | Copyright 2012 | http://CBGBenefits.com
Compliance Steps
• Assess obligation to report
• Determine the aggregate cost of each type of coverage
• Coordinate with payroll provider to report coverage on Form W-2
CBG Benefits | Copyright 2012 | http://CBGBenefits.com
Image Credits
Question Mark: http://www.flickr.com/photos/49968232@N00/12364944/
Calendar: http://www.flickr.com/photos/78199439@N00/5144905694/
Siding: http://www.flickr.com/photos/8531344@N06/2369962508/
Taxes: Image courtesy of Arvind Balardman / FreeDigitalPhotos.net
Itemized Deductions: http://zywave.com
Cash and Stethoscope: http://zywave.com
THANK YOU!
CONTACT CBG BENEFITS IF YOU HAVE ANY QUESTIONS.
Web: http://CBGBenefits.com | Phone: 877-EE-Bnfts
Email: [email protected] | Twitter: @CBGBenefits