Health Care Coverage and Form W-2(Obamacare)

JD Supra ^ | July 31,2011 | Constangy, Brooks & Smith, LLP

[mdittmar]

Late last month, the IRS issued guidance on how employers will report the aggregate cost of employer-sponsored health coverage provided to an employee on Form W-2. The Patient Protection and Affordable Care Act (PPACA) imposed the reporting requirement, originally effective for the 2011 Form W-2s (for issuance in 2012). However, an earlier IRS Notice postponed this reporting requirement until the 2012 Form W-2s (for issuance in 2013).

Calculation of Aggregate Cost. The aggregate cost of coverage provided to the employee includes amounts that both the employer and the employee pay. In addition, the aggregate cost includes any portion of the cost of coverage that is includable in the employee's gross income (for example, the cost of coverage provided to over-age 26 dependents). The reporting requirement applies to only "applicable employer sponsored coverage," defined as coverage under any group health plan that is excludable from the employee's gross income under Internal Revenue Code Section 106, or that would be so excludable if it were employer-provided coverage that same section.

Please see full article below for more information

[Rome2000]

They stepped over the line a long time ago.

This is slavery.

[mdittmar]

In Notice 2011-28, the IRS provides that an employer should determine the aggregate cost of coverage in a manner similar to that used to determine COBRA premiums.

I found this interesting,isn't COBRA expensive,and used by those who need short term coverage when they lose their employer based coverage?

[Terry Mross]

To use Cobra when my wife left her job the cost was $1,100 or her.....$1,800 for both of us. That’s per month! Who could afford that?

[Logical me]

Question? There are about half of Americans that do not pay income tax. For those that do not work (do not have a job) will they also be obliged to pay for health insurance or do they ride free? And the others that have a job will they still get a W2 and have to file. And will they be entitled to get a refund for their health insurance along with their normal handout? With all the government handouts they will have more income (handouts) than thoes that work their ass off. This whole communists thing is such a pile of shi!.

[mdittmar]

Who could afford that?

Those that don't have to pay.

[alice_in_bubbaland]

I heard that COBRA coverage has been extended from the mandatory one year to three years. Has anyone else heard this?

[Bibman]

_crew amabo and his health care.
Direct violations of the 4th and 5th amendments

[blackdog]

I don't get it? Does this mean it's imputed income? Will we now have to pay taxes on the healthcare provided by our employer as though it were income?

It sure seems as though that's the goal.

[Scotswife]

ok - this is mumbo jumbo for my puny brain.

I’ve got a set amount I’ve been setting aside to make sure we can pay our tax bill.

Now we’re into august - are we paying income tax on health benefits?
Were we supposed to be putting money aside for this during 2011?

gulp

[mdittmar]

No,they put it off till after the 2012 election.

[Scotswife]

ooohhhh k. So - this means the w-2’s start reporting in ‘12, and we start paying in ‘13?

What evil trolls they are.

[TheBattman]

will they also be obliged to pay for health insurance or do they ride free?

What do you think...?

[KarlInOhio]

To use Cobra when my wife left her job the cost was $1,100 or her.....$1,800 for both of us. That’s per month! Who could afford that?

Apparently her boss. Cobra costs are what the business pays plus a couple percent administrative fee. I don't know how it is calculated for businesses that self-insurer.

[Gene Eric]

>> No,they put it off till after the 2012 election.

Exactly.

[GeronL]

This is the ObamaCare incentive for companies to drop health benefits altogether.

[SunkenCiv]

"When I said we were going to stop having an ownership society, well, what I meant was, YOU were going to stop having it."

[SatinDoll]

Yep. Raising your taxes surreptitiously.

The whole purpose is to collect taxes to pay the medical costs of those who do not work.

[Bobby_Taxpayer]

Contempt of Court! This law is and has been declared unconstitutional!

[Chode]

everybody BUT the unions... right???