W-2 reporting simplified

February 2014

The Affordable Care Act (ACA) requires employers providing applicable employer-sponsored coverage under a group health plan to report the value of the health care coverage on their employees’ W-2s (Wage and Tax Statement). This amount is not taxable, and should include both the amount paid by the employer, as well as the portion paid by the employee.

This year, getting guidance regarding W-2 reporting is easier than ever for employers with Aflac through Aflac Business Services. To view and print benefits reports, log in to Aflac Business Services or, if you receive paper statements, sign up at Aflac Business Services. This tool, which is for informational purposes only, may be helpful as you prepare for your W-2 reporting of employer-sponsored health care coverage.

W-2 Reporting Fast Facts:

  • Employers are required to provide this information by Jan. 31 for the previous year. So, for example, by Jan. 31, 2015, employers should have documented this on their employees’ 2014 W-2 statements.
  • The cost must be reported in Box 12 (using Code “DD” to identify the amount) of an employee’s W-2.
  • Until further guidance is issued by the government, the reporting requirement applies only to employers who filed 250 or more eligible employee W-2 statements in the preceding year.
  • The amount reported should include the amount paid by the employer and the portion paid by the employee, regardless of whether it is paid by the employee on a pre-tax or after-tax basis.

Learn more about what’s included in employer-sponsored coverage, and what’s considered exempt here.

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This material is intended to provide general information about an evolving topic and does not constitute legal, tax or accounting advice regarding any specific situation. Aflac cannot anticipate all the facts that a particular employer or individual will have to consider in their benefits decision-making process. We strongly encourage readers to discuss their  situations with their advisors to determine the actions they need to take or to visit healthcare.gov (which may also be contacted at 1-800-318-2596) for additional information.
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