Employment: More Recordkeeping Required Under Healthcare Reform
The Patient Protection and Affordable Care Act of 2010, more commonly known as healthcare reform, provides that certain employers must provide employees with information concerning the cost of their healthcare coverage, including both employer and employee premium payments. Insurance coverage under which benefits for medical care are secondary, however, such as workers' compensation insurance, are not subject to the reporting requirements.
The information is to be reported on Form W-2, Wage and Tax Statement. Including the information on the W-2, however, does not cause the cost of coverage to be taxable income to the employee. Only employers who file 250 or more Forms W-2 for the preceding calendar year are required to provide this information.
The purpose of providing this information is to make employees aware of the cost of their healthcare coverage. Although employers may begin providing this information with the W-2 for 2011, the report is not required until 2012.
By Rebecca M. Fowler, firstname.lastname@example.org