IRS Delays Smaller Employer Deadline to Report Insurance Costs on W-2s

By Staff Report

Mar. 30, 2011

The Internal Revenue Service said on March 29 that it will give smaller employers even more time to comply with a health care reform law requirement that employers report the cost of coverage on employees’ W-2 wage and income statements.

In addition, the IRS also clarified that the reporting requirement does not apply to retirees receiving health care coverage.

Under the reform law, employers were required to provide health care cost information on 2011 W-2 statements that are distributed to employees in 2012. But last year, the IRS waived that requirement for 2011 and said the health care cost reporting requirement would apply to 2012 W-2s, which are issued in 2013.

Under the guidance, employers that issue fewer than 250 W-2s in 2011 will not be required the cost of coverage on the 2012 W-2s.

Those employers “will not be required to report the cost of health coverage … prior to January 2014. This transition relief will continue until the issuance of further guidance,” the IRS said.

In addition, the IRS made clear that employers will not have to issue W-2s to retirees who receive health care coverage but no longer receive wages or salary.

“An employer is not required to issue Form W-2 including the aggregate reportable cost to an individual to whom the employer is not otherwise required to issue a Form W-2,” the IRS said.

The IRS guidance resolves a key question raised by employers with retiree health care plans, said Andy Anderson, a partner with law firm Morgan, Lewis & Bockius in Chicago.  

Filed by Jerry Geisel of Business Insurance, a sister publication of Workforce Management. To comment, e-mail


Stay informed and connected. Get human resources news and HR features via Workforce Management’s Twitter feed or RSS feeds for mobile devices and news readers.


blog workforce

We build robust scheduling & attendance software for businesses with 500+ frontline workers. With custom BI reporting and demand-driven scheduling, we help our customers reduce labor spend and increase profitability across their business. It's as simple as that.

Book a call
See the software

Related Articles

workforce blog


Minimum Wage by State in 2022 – All You Need to Know

Summary The federal minimum wage rate is $7.25, but the rate is higher in 30 states, along with Washing...

federal law, minimum wage, pay rates, state law, wage law compliance

workforce blog


California’s push for a 32-hour workweek explained, and how to prepare

Summary: California is considering a 32-hour workweek bill for businesses with over 500 staff 4 day wee...

32 hour workweek, 4 day workweek, california, legislature, overtime

workforce blog


A business owner’s guide to restaurant tipping law

Business owners in the restaurant industry are in a unique position when it comes to employee tips. As ...

restaurants, tip laws, tipping