Calculating Company Paid Health Insurance & The Affordable Care Act
The Affordable Care Act was enacted on March 23, 2010. It contains some tax provisions that are in effect and more that will be implemented during the next several years. One of the requirements of the Affordable Care Act that will effect all business owners who provide employee health insurance, is that you now must report employer provided health coverage on Form W-2. Below is information copied directly from the IRS website. The Affordable Care Act requires employers to report the cost of coverage under an employer-sponsored group health plan on an employee’s Form W-2, Wage and Tax Statement, in Box 12, using Code DD. Many employers are eligible for transition relief for tax-year 2012 and beyond, until the IRS issues final guidance for this reporting requirement. The amount reported…