Reporting Aggregate Cost of Insurance on 2012 W2’s

All 2012 W2’s that will be distributed in January 2013 are required to report the aggregate cost of insurance coverage. Currently, if you filed less than 250 W2’s in 2011 you are exempt from this W2 reporting requirement this year.

The value of health care coverage will be reported in Box 12 of the W2 with code DD to identify the amount. You are required to report the total cost of both employer and employee contributions for major medical and any other nontaxable “group health plan” coverage for which COBRA is offered, except if dental or vision coverage is offered on a stand alone basis. A copy of the full chart from the IRS outlining the types of coverage that employers must report on the W2 can be accessed here.

Please contact our office with any questions.