The IRS last week reminded tax-exempt employers about another provision in the health care reform bill that requires them to report the value of the health insurance coverage they provide on each employee’s annual Form W-2 beginning in tax year 2011.
According to the IRS, this reporting is for informational purposes only, to show employees the value of their health care benefits so they can be more informed consumers.
“The amount reported does not affect tax liability, as the value of the employer contribution to health coverage continues to be excludible from an employee’s income and it is not taxable,” the IRS said. For more information, visit the IRS website.
