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Health Care Coverage and Form W-2(Obamacare)
JD Supra ^ | July 31,2011 | Constangy, Brooks & Smith, LLP

Posted on 07/31/2011 2:16:48 PM PDT by mdittmar

Late last month, the IRS issued guidance on how employers will report the aggregate cost of employer-sponsored health coverage provided to an employee on Form W-2. The Patient Protection and Affordable Care Act (PPACA) imposed the reporting requirement, originally effective for the 2011 Form W-2s (for issuance in 2012). However, an earlier IRS Notice postponed this reporting requirement until the 2012 Form W-2s (for issuance in 2013).

Calculation of Aggregate Cost. The aggregate cost of coverage provided to the employee includes amounts that both the employer and the employee pay. In addition, the aggregate cost includes any portion of the cost of coverage that is includable in the employee's gross income (for example, the cost of coverage provided to over-age 26 dependents). The reporting requirement applies to only "applicable employer sponsored coverage," defined as coverage under any group health plan that is excludable from the employee's gross income under Internal Revenue Code Section 106, or that would be so excludable if it were employer-provided coverage that same section.

Please see full article below for more information


TOPICS: Business/Economy; Constitution/Conservatism; Front Page News; Government; News/Current Events
KEYWORDS: commiecare; irs; obama; obamacare; ppaca; taxes

1 posted on 07/31/2011 2:16:49 PM PDT by mdittmar
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To: mdittmar
They stepped over the line a long time ago.

This is slavery.

2 posted on 07/31/2011 2:19:43 PM PDT by Rome2000 (OBAMA IS A COMMUNIST CRYPTO-MUSLIM)
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To: Rome2000
In Notice 2011-28, the IRS provides that an employer should determine the aggregate cost of coverage in a manner similar to that used to determine COBRA premiums.

I found this interesting,isn't COBRA expensive,and used by those who need short term coverage when they lose their employer based coverage?

3 posted on 07/31/2011 2:25:33 PM PDT by mdittmar (i)
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To: mdittmar

To use Cobra when my wife left her job the cost was $1,100 or her.....$1,800 for both of us. That’s per month! Who could afford that?


4 posted on 07/31/2011 2:28:19 PM PDT by Terry Mross (I'll only vote for a SECOND party.)
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To: mdittmar
Question? There are about half of Americans that do not pay income tax. For those that do not work (do not have a job) will they also be obliged to pay for health insurance or do they ride free? And the others that have a job will they still get a W2 and have to file. And will they be entitled to get a refund for their health insurance along with their normal handout? With all the government handouts they will have more income (handouts) than thoes that work their ass off. This whole communists thing is such a pile of shi!.
5 posted on 07/31/2011 2:37:04 PM PDT by Logical me
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To: Terry Mross
Who could afford that?

Those that don't have to pay.

6 posted on 07/31/2011 2:46:07 PM PDT by mdittmar (i)
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To: mdittmar

I heard that COBRA coverage has been extended from the mandatory one year to three years. Has anyone else heard this?


7 posted on 07/31/2011 2:49:54 PM PDT by alice_in_bubbaland (DeMint /Palin, DeMint/Bachmann, DeMint/Cain, DeMint/Ryan 2012!!!!!!!)
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To: mdittmar

_crew amabo and his health care.
Direct violations of the 4th and 5th amendments


8 posted on 07/31/2011 2:51:09 PM PDT by Bibman
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To: mdittmar
I don't get it? Does this mean it's imputed income? Will we now have to pay taxes on the healthcare provided by our employer as though it were income?

It sure seems as though that's the goal.

9 posted on 07/31/2011 3:03:27 PM PDT by blackdog (The mystery of government is not how Washington works but how to make it stop)
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To: mdittmar

ok - this is mumbo jumbo for my puny brain.

I’ve got a set amount I’ve been setting aside to make sure we can pay our tax bill.

Now we’re into august - are we paying income tax on health benefits?
Were we supposed to be putting money aside for this during 2011?

gulp


10 posted on 07/31/2011 3:07:45 PM PDT by Scotswife
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To: Scotswife

No,they put it off till after the 2012 election.


11 posted on 07/31/2011 3:15:11 PM PDT by mdittmar (i)
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To: mdittmar

ooohhhh k. So - this means the w-2’s start reporting in ‘12, and we start paying in ‘13?

What evil trolls they are.


12 posted on 07/31/2011 3:18:34 PM PDT by Scotswife
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To: Logical me
will they also be obliged to pay for health insurance or do they ride free?

What do you think...?

13 posted on 07/31/2011 3:30:04 PM PDT by TheBattman (They exchanged the truth about God for a lie and worshiped and served the creature...)
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To: Terry Mross
To use Cobra when my wife left her job the cost was $1,100 or her.....$1,800 for both of us. That’s per month! Who could afford that?

Apparently her boss. Cobra costs are what the business pays plus a couple percent administrative fee. I don't know how it is calculated for businesses that self-insurer.

14 posted on 07/31/2011 4:07:23 PM PDT by KarlInOhio (The Repubs and Dems are arguing whether to pour 9 or 10 buckets of gasoline on a burning house.)
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To: mdittmar

>> No,they put it off till after the 2012 election.

Exactly.


15 posted on 07/31/2011 4:50:59 PM PDT by Gene Eric (May our dreams converge for a free and prosperous nation.)
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To: KarlInOhio; Terry Mross

This is the ObamaCare incentive for companies to drop health benefits altogether.


16 posted on 07/31/2011 5:01:04 PM PDT by GeronL (The Right to Life came before the Right to Happiness)
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To: AdmSmith; AnonymousConservative; Berosus; bigheadfred; Bockscar; ColdOne; Convert from ECUSA; ...
Image and video hosting by TinyPic "When I said we were going to stop having an ownership society, well, what I meant was, YOU were going to stop having it."

17 posted on 07/31/2011 5:40:11 PM PDT by SunkenCiv (Yes, as a matter of fact, it is that time again -- https://secure.freerepublic.com/donate/)
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To: blackdog

Yep. Raising your taxes surreptitiously.

The whole purpose is to collect taxes to pay the medical costs of those who do not work.


18 posted on 07/31/2011 5:52:01 PM PDT by SatinDoll (NO FOREIGN NATIONALS AS OUR PRESIDENT!)
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To: mdittmar

Contempt of Court! This law is and has been declared unconstitutional!


19 posted on 07/31/2011 6:12:27 PM PDT by Bobby_Taxpayer (Don't tread on us...or you'll pay the price in the next election.)
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To: mdittmar
everybody BUT the unions... right???
20 posted on 07/31/2011 6:18:41 PM PDT by Chode (American Hedonist - *DTOM* -ww- NO Pity for the LAZY)
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To: GeronL
Why don't I just drop coverage from my employer and that way I don't have to claim the income? But oh yeah.......It's law you have to have coverage or they fine you at tax time.

Seems a no win at all for the public. I'm sure unions and federal employees will have tax liability waivers though.

21 posted on 07/31/2011 8:28:01 PM PDT by blackdog (The mystery of government is not how Washington works but how to make it stop)
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To: mdittmar

This allows the feds to determine if your medical benefit plan is a “Cadillac Plan” which would subject your employer/insurer to a 40% excise tax starting in 2018.

Obamacare, the “recurring” nightmare!

http://www.towerswatson.com/press/1895
http://www.paychexinsurance.com/healthcarereform/faq/w-2-faq.aspx


22 posted on 07/31/2011 8:39:51 PM PDT by Drago
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To: alice_in_bubbaland
The feds have extended COBRA premium payment "assistance" several times. Several states, CA, PA and IL among them, have state laws that force employers to offer COBRA to former employees under specific circumstances. See here for more: subsidy State extensions
23 posted on 07/31/2011 9:30:15 PM PDT by ElenaM
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