New Employer W‐2 Health Insurance Reporting Requirements

Health Care Reform continues to gain momentum with weekly interpretations from Washington. Attached please find a W-2 summary from the National Association of Health Underwriters (NAHU) which provides me with insight.

For taxable years beginning after December 31, 2010, employers will be required to calculate and report the total cost of employer‐sponsored health insurance coverage on employees’ W‐2s. This new reporting requirement applies for employees’ tax years beginning after December 31, 2010, in which case most W-2s for the tax year 2011 will be issued in January of 2012. Payroll systems need to be updated for this change by January 2011.

This W-2 reporting employer mandate will calculate and define those employers who provide “cadillac plans” which will be subject a 40% (cadillac) excise tax. At this juncture the health insurance premiums are not included as taxable income. While I try to stay politically neutral, my fear is health insurance premiums may become taxable income.

The attached NAHU brief will help explain this employer mandate in greater detail. As always we appreciate your business and will deliver health care reform interpretations as they are released.  For more health care reform guidance, please visit our website at

Burman S. Clark

Burman S. Clark, RHU, CSA is the President of Muneris Benefits and a licensed insurance broker and consultant. His independent practice and focuses on employee benefits, individual life, disability, medical, and senior products. Burman has traveled extensively and provided guidance to large employer associations with regards to the Affordable Care Act.