July 19, 2010
Starting with W-2s for 2011, employers are required to report the value of company provided health coverage. The amount listed is not taxed as income to the employee, but the figure still must be shown separately on the form. However, employers shouldn’t think they have until 2012 to prepare for this requirement.
Departing workers can ask for a W-2 within 30 days of the final paycheck or the date the request is made, whichever is later. Even though few people do this, churches and charities will need to be ready in early 2011. The calculation of the health plan’s value is the same as the value used to figure the allowable premium for COBRA coverage.
Source: The Kiplinger Tax Letter, June 25, 2010
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