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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
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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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