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The IRS recently issued a draft Form W-2 for 2011.
Employers use the form to report wages and employee tax withholding.
The IRS also plans to defer the new requirement for employers to report the cost of coverage under an employer-sponsored group health plan, making that reporting by employers optional in 2011.
The draft Form W-2 includes codes employers may use to report the cost of coverage under an employer-sponsored group health plan.
The Treasury Department and the IRS have determined that this relief is necessary to provide employers the time they need to make changes to their payroll systems or procedures in preparation for compliance with the new reporting requirement. The IRS will publish guidance on the new requirement later this year.
Although reporting the cost of coverage will be optional in 2011, the IRS stresses that the amounts reportable are not taxable.
Included in the Affordable Care Act passed by Congress in March, the new reporting requirement is intended to be informational only, and to provide employees with greater transparency into health care costs.