From the Hotline: W-2 Reporting and Health Premiums Paid by Employees
Question: Must an employer report Health Care, Short-term Disability and Long-term Disability premiums paid 100% by the employer on employees’ Forms W-2 because of health care reform? The group has under 30 lives on its plans.
Answer: At this time, W-2 reporting of these items listed is optional. STD/LTD plans are not included in the W-2 reporting requirement under the Affordable Care Act, but employers may choose to report the cost of coverage if they wish to do so. The reporting requirement for health care premiums is optional at this time for employers who filed less than 250 Form W-2s for the previous year.
The IRS has provided a helpful chart to assist employers with assessing their W-2 reporting requirements that can be accessed via the link provided below.