ASAP
IRS Provides Interim Guidance on Health Cost Reporting Requirements
A detailed discussion of the new reporting requirement is contained in section II of the Notice. Section III contains the interim guidance, presented in question and answer format. The guidance clarifies that the aggregate reportable cost of health coverage includes both the portion of the cost paid by the employer and the portion of the cost paid by the employee. This guidance identifies the employers subject to the reporting requirements; provides the methods for reporting the cost of the coverage on the Form W-2; defines certain terms related to the cost of coverage required to be reported on the Form W-2; sets forth the types of coverage the cost of which is required to be included in the amount reported on the Form W-2; discusses several calculation methods that may be used to determine the cost of the coverage; and addresses a number of other issues employers may encounter in determining the cost of the health coverage. Section IV provides the transition relief for certain small employers and with respect to certain types of employer-sponsored coverage. The final section of the Notice requests public comments on any portion of the guidance, including any areas to be addressed in future guidance or regulations on this reporting requirement.