Family Temporary Disability Insurance Program by chenmeixiu


									          The Vita Viewpoint
          Important Information for Decision Makers

                  IRS Relief from Mandatory Health Insurance
                  Coverage Reporting on W-2 Forms for 2011


The IRS released Notice 2010-69 providing employers a reprieve from having to report the
aggregate cost of employer-sponsored group health plan coverage on Forms W-2 issued for
2011. Reporting for 2011 will be optional, and employers taking advantage of the reprieve will
not be treated as having failed to meet the Code Sec. 6051 wage and tax statement reporting
requirements or be subject to any penalties.

The Details

For tax years beginning on or after Jan. 1, 2011, Code Sec. 6051(a)(14) was added by §9002 of
the Patient Protection and Affordable Care Act on March 23, 2010 requiring that the aggregate
cost of the applicable employer-sponsored health insurance coverage (as defined in Code Sec.
4980I(d)(1)) be reported on Form W-2. Notice 2010-69 amends this requirement and provides
the following relief:

       Reporting of the aggregate cost of employer-sponsored group health plan coverage will
       be optional for 2011
       No penalties will be assessed for NOT reporting
       The IRS has issued a draft Form W-2 which includes codes that employers may use, if
       they choose, to report the cost of coverage for 2011 under an employer-sponsored
       group health plan

The Treasury Department and the IRS anticipate publishing guidance on the new requirement
before the end of 2010.

How Employers Will Be Impacted

The Treasury Department and the IRS have determined that 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.

                For questions or additional information, please contact
                        Vita Benefits Group at (650) 968-8811.
 2010 The Vita Companies                                                          October 13, 2010

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