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W-2 Reporting

New Reporting Requirement for Large Businesses

The Patient Protection and Affordable Care Act includes a Form W-2 reporting requirement designed to help participants in group health plans better understand the true cost of their coverage. For the employee Form W-2 issued in January for the previous tax year, employers are required to report the value of certain employer-sponsored health benefits. This requirement is:

  • Mandatory for employers who filed 250 or more Forms W-2 in the previous tax year, and
  • Optional for those who filed fewer than 250 Forms W-2 (but may become mandatory in the future).
  • The risk for these employers in not meeting this requirement is being penalized for filing a late or incomplete W-2 Form. The employer can be fined up to $100 per employee in this case.

    Peace of Mind With BeneTrac

    BeneTrac helps make meeting the W-2 reporting requirement more convenient, more accurate, and less time consuming. Aggregating the employer-paid premiums for the entire year can be a complicated task. Many systems simply multiply a single month’s premiums by 12 in order to get the annual amount. This practice can be risky in the event of an audit, as monthly premiums can adjust throughout the year due to qualifying events.

    BeneTrac’s innovative technology allows for the calculation of the true monthly premiums, as they were paid throughout the year, thereby avoiding year-end surprises and costly reconciliations.

    Our system provides:

    • The ability to run individual employee aggregate reports.
    • A report that can be imported into your payroll system.
    • Employer costs and employee deductions for an aggregate cost of benefits.