Form W-2 reporting requirement delayed one year

The Department of Treasury and the Internal Revenue Service have issued Notice 2010-69 regarding the implementation of the Form W-2 reporting provision of the health care law.  The notice states that the reporting of the aggregate cost of applicable employer-sponsored coverage that was set to go into effect for tax year 2011, will be delayed for another year.

The notice states that such reporting is not mandatory for Forms W-2 issued for 2011.  In addition, employers not reporting the cost of coverage for 2011 will not be subject to penalties for not reporting.  Further guidance from the Department and the IRS is anticipated before the end of 2010.

In addition, the IRS released a draft updated Form W-2 with instructions.  This form must go through further regulatory approval processes before it is finalized, which is also anticipated by the end of the year.

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