A break for small firms on reporting the value of health coverage on W-2s: The IRS won’t require it for 2012 W-2 forms, either.
The Revenue Service already suspended the reporting rule for 2011 W-2s that will be filed in early 2012. That relief applied to all employers. Now it says firms filing fewer than 250 W-2s need not report the value on W-2s for 2012.
Larger employers will not be exempted for 2012. Notice 2011-28 has the complete details on how they should comply, including how to compute the value of benefits. Remember, even when the value of the coverage is shown on the W-2, it won’t be included in employees’ incomes. Congress added the reporting rule so employees will have a better appreciation of the amount that their employers spend on their health insurance coverage.