The Internal Revenue Service (IRS) has further delayed the PPACA deadline for small employers to report the cost of health care coverage on employees’ Form W-2s. Small employers that file fewer than 250 Form W-2s in 2011 do not need to comply with the reporting requirements before January 2014. The IRS did not delay the deadline for larger employers. Larger employers must comply with the health care coverage cost reporting requirements for Form W-2s issued in January 2013. Employers may voluntarily elect to include the information in Form W-2s issued in January 2012.


Notice 2011-28 also provided that employers will not be required to issue Form W-2s to retirees who no longer receive wages or salary solely to comply with the PPACA health care coverage cost reporting requirements. This IRS guidance is welcome news for employers with retiree health care plans.


The IRS guidance also provides more details on how to report, what coverage to include, and how to determine the cost of the coverage for 2012 Form W-2s.


See for the full text of IRS Notice 2011-28.