I don't get billed for unheard of expenses. Fixed monthly fee accounting eliminates my worry of surprise billing.

Find an Accountant near you!

Enter your ZIP code or view those listed on the right to find accountants in your area.
Company: Donald Button, CPA, PLLC Name: Donald Button URL: http://www.buttoncpa.com Phone: 336-854-4303 Address: 2012 C New Garden Road, Brassfield Professional Center, Greensboro ,NC 27410
Company: ComPro Business Services Name: Paul Scheasley URL: http://www.comprobiz.com Phone: 704-588-5066 Address: P.O. Box 7568, Charlotte ,NC 28241

The Inside Scoop on W-2 Healthcare Reporting

  • strict warning: Non-static method view::load() should not be called statically in /mnt/stor15-wc2-dfw1/458298/543624/www.smallbizaccountants.com/web/content/modules/views/views.module on line 879.
  • strict warning: Declaration of views_handler_field_user::init() should be compatible with views_handler_field::init(&$view, $options) in /mnt/stor15-wc2-dfw1/458298/543624/www.smallbizaccountants.com/web/content/modules/views/modules/user/views_handler_field_user.inc on line 0.
  • strict warning: Declaration of views_handler_argument::init() should be compatible with views_handler::init(&$view, $options) in /mnt/stor15-wc2-dfw1/458298/543624/www.smallbizaccountants.com/web/content/modules/views/handlers/views_handler_argument.inc on line 0.
  • strict warning: Declaration of views_plugin_style_default::options() should be compatible with views_object::options() in /mnt/stor15-wc2-dfw1/458298/543624/www.smallbizaccountants.com/web/content/modules/views/plugins/views_plugin_style_default.inc on line 0.
  • strict warning: Declaration of views_plugin_row::options_validate() should be compatible with views_plugin::options_validate(&$form, &$form_state) in /mnt/stor15-wc2-dfw1/458298/543624/www.smallbizaccountants.com/web/content/modules/views/plugins/views_plugin_row.inc on line 0.
  • strict warning: Declaration of views_plugin_row::options_submit() should be compatible with views_plugin::options_submit(&$form, &$form_state) in /mnt/stor15-wc2-dfw1/458298/543624/www.smallbizaccountants.com/web/content/modules/views/plugins/views_plugin_row.inc on line 0.
  • strict warning: Non-static method view::load() should not be called statically in /mnt/stor15-wc2-dfw1/458298/543624/www.smallbizaccountants.com/web/content/modules/views/views.module on line 879.
  • strict warning: Declaration of views_handler_filter::options_validate() should be compatible with views_handler::options_validate($form, &$form_state) in /mnt/stor15-wc2-dfw1/458298/543624/www.smallbizaccountants.com/web/content/modules/views/handlers/views_handler_filter.inc on line 0.
  • strict warning: Declaration of views_handler_filter::options_submit() should be compatible with views_handler::options_submit($form, &$form_state) in /mnt/stor15-wc2-dfw1/458298/543624/www.smallbizaccountants.com/web/content/modules/views/handlers/views_handler_filter.inc on line 0.
  • strict warning: Declaration of views_handler_filter_boolean_operator::value_validate() should be compatible with views_handler_filter::value_validate($form, &$form_state) in /mnt/stor15-wc2-dfw1/458298/543624/www.smallbizaccountants.com/web/content/modules/views/handlers/views_handler_filter_boolean_operator.inc on line 0.
  • strict warning: Non-static method view::load() should not be called statically in /mnt/stor15-wc2-dfw1/458298/543624/www.smallbizaccountants.com/web/content/modules/views/views.module on line 879.
  • strict warning: Non-static method view::load() should not be called statically in /mnt/stor15-wc2-dfw1/458298/543624/www.smallbizaccountants.com/web/content/modules/views/views.module on line 879.
 

Jan 12

W-2 form

All W-2s issued in January 2013 from most employers for wages paid in calendar year 2012 must for the first time include line 12 showing the benefit employees receive from their employer-sponsored health care. 

 

 

 

Why?

 

As part of health care reform, revealing the employer amount is meant to increase transparency and awareness of the amount employers contribute to an employee’s health care costs. Bear this requirement in mind as you begin to gather W-2 information for January.  If you have questions, consult your payroll service provider or accountant.

 

What are the rules for the new W-2 reporting obligations for small business?

 

·         Aggregate reportable costs of healthcare coverage provided for employees should be reported on Line 12 of an employee’s W-2.

 

·         If you are an employer with less than 250 Form W-2s for 2012, you will be exempt from filing.

 

·         Multi-employer plans are also temporarily exempt from the filing requirements.

 

·         Salary reduction amounts contributed to a health care FSA need not be reported; however, any amount available under an FSA in excess of the salary reduction amounts must be included.

 

·         Aggregate reportable costs do NOT include:

 

o   2% administrative costs for COBRA coverage.

 

o   Costs of employer-provided coverage included in income when the employee is a 2% shareholder of an S Corp.

 

o   Amounts contributed to an health reimbursement arrangement (HRAs)

 

o   Costs of self-insured plans of employers not subject to COBRA continuation coverage

 

These are just the highlights of the IRS requirements for new healthcare W-2 filing in 2013.  Don’t wait until the end of January to try to understand your small business’ obligations. Penalties for failing to comply with the requirements can mean a big impact on your small business.  Small businesses can face up to $200 per improperly or unfiled W-2 up to a $3 million cap.  Moreover, if the IRS finds that the business failed to provide the correct amount due to intentional disregard, the amount can increase to $250 per W-2 with no cap on the total amount. 

Want to learn more? Talk with a PASBA small business professional by clicking Find An Accountant and searching in your areas.

 

PASBA member accountants bring the collective resources of a nationwide network of Certified Public Accountants, Public Accountants, Enrolled Agents and other practitioners available to answer your tax and financial questions and streamline your business accounting, bookkeeping, and payroll operations.

 

To find a trusted accountant in your area, visit www.SmallBizAccountants.com.

 

Please be advised that, based on current IRS rules and standards, any advice contained herein is not intended to be used, nor can it be used, for the avoidance of any tax penalty that the IRS may assess related to this matter. Any information contained in this article, whether viewed or subsequently printed, cannot be relied upon as qualified tax and accounting advice. Any information contained in this article does not fall under the guidelines of IRS Circular 230.

 

Copyright Information 2013 Professional Association of Small Business Accountants

 

 

Need Help?

Let us help you focus on your business.

Submit

Find Your Accountant

Join Our Mailing List

Keep up to date with us, by
providing your email address!

Enter your email address:

Delivered by FeedBurner

 

Copyright 2013 PASBA  |  Professional Association of Small Business Accountants