Reporting Health Insurance Premiums on W2 Forms
Section 6051 of the Affordable Care Act (ACA) requires employers to report annually all wages and wage-related information on employees’ Form W-2, including the aggregate cost of employer-sponsored health care coverage for employees. Section 6051 was enacted to give employees a transparent view of the value (i.e., the employer’s cost) of employer-sponsored health care coverage that is provided on a pre-tax basis.
Church employers are temporarily exempt from Section 6051 reporting. However, churches should be aware that the earliest that they could be required to begin reporting the value of employees’ health coverage on Forms W2 is January 2015 (for the 2014 tax year). The IRS will issue advanced notice of the end of this exemption when it is finalized. Churches will be notified when this requirement goes into effect, at which time the Benefits Office will help in providing churches with the health insurance premium value to list on employee’s Form W2.