Reading W-2 Forms
As tax season approaches, employers are required to issue W-2 tax forms to their workers. The W-2 has key information that determines the amount of tax an individual owes to the IRS for 2013. Form W-2 is a challenge to navigate; the picture below may help orient you to the form. Plus, here is a guide
that you can download and handout to your employees.
Key Changes to the W-2 for 2013
The Affordable Care Act requires employers to report any coverage provided under an employer-sponsored group health plan. This reporting is for informational purposes only and provides employees useful and comparable consumer information on the cost of their health care coverage. Employers that provide "applicable employer-sponsored coverage" under a group health plan are subject to the reporting requirement.
The cost of employer-sponsored health coverage is reported in Box 12 for information only. The health coverage amount is reported with a Code DD designation and is not taxable. It should include both the portion paid by the employer and the portion paid by the employee.
W-2 Instructions for Employees
We have developed this guide
you can download and hand out to employees who need more information on how to read their W-2s. As always, if you have any questions or want more information, please feel free to contact us