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W2 Reporting - Health Care Reform Notice 2011-28

W2 Reporting Notice: Cost of Employer-Sponsored Group Health Plan Coverage

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. Specifically employers that were required to file fewer than 250 2011 Forms W-2 will not be subject to the reporting requirement for 2012 W-2’s.

There are several exclusions from this reporting requirement such as contributions to multi-employer plans, self-funded plans not subject to Federal COBRA, and in some instances dental and vision coverage, among others. For more information refer to the IRS chart.