Dear Reader:
The following document was created from the MTAS website (www.mtas.tennessee.edu). This website is maintained daily by MTAS staff and seeks to represent the most current information regarding issues relative to Tennessee municipal government.
We hope this information will be useful to you; reference to it will assist you with many of the questions that will arise in your tenure with municipal government. However, the Tennessee Code Annotated and other relevant laws or regulations should always be consulted before any action is taken based upon the contents of this document.
Please feel free to contact us if you have questions or comments regarding this information or any other MTAS website material.
Sincerely,
The University of Tennessee
Municipal Technical Advisory Service
1610 University Avenue
Knoxville, TN 37921-6741
865-974-0411 phone
865-974-0423 fax
www.mtas.tennessee.edu
I was able to find an article on Form W-2 for Health Care Reform Reporting
(http://www.irs.gov/uac/Form-W-2-Reporting-of-Employer-Sponsored-Health-Coverage [3]). It provides that the employer is required to report the cost of coverage under the employer’s group health plan. In general, the amount reported should include both the portion paid by the employer and the portion paid by the employee. A chart at the end of the report gives us some indication of what needs to be reported and what doesn’t.
In addition, the regulations provides the following section, “SEC. 9002. INCLUSION OF COST OF EMPLOYER-SPONSORED 2 HEALTH COVERAGE ON W–2”.
(a) IN GENERAL.—Section 6051(a) of the Internal Revenue Code of 1986 (relating to receipts for employees) is amended by striking ‘‘and’’ at the end of paragraph (12), by striking the period at the end of paragraph (13) and inserting ‘‘, and’’, and by adding after paragraph (13) the following new paragraph:
‘‘(14) the aggregate cost (determined under rules similar to the rules of section 4980B(f)(4)) of applicable employer-sponsored coverage (as defined in section 4980I(d)(1)), except that this paragraph shall not apply to—
‘‘(A) coverage to which paragraphs (11) and (12) apply, or
‘‘(B) the amount of any salary reduction contributions to a flexible spending arrangement (within the meaning of section 125).’’.
The IRS code only refers to it as the cost of employer sponsored health coverage with no other explanation.
I hope this information is helpful. Feel free to contact me if you have questions or I can be of any further assistance.
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Richard L. Stokes, IPMA-CP, PHR
Office Manager/Human Resources Consultant
Executive Director - TN Chapter IPMA-HR
The University of Tennessee
Municipal Technical Advisory Service
226 Capitol Blvd. Bldg., Suite 606
Nashville, TN 37219
615/532-6827 (office)
615/532-4963 (fax) [4]
http://www.mtas.tennessee.edu [5]
To meet the challenge of providing timely, valuable information and assistance to Tennessee cities to help build better communities
Visit our health care blog at http://www.mtas.tennessee.edu/public/web.nsf/Web/Human+Resources [6]
Links:
[1] https://www.mtas.tennessee.edu/kb-authors/stokes-richard
[2] https://www.mtas.tennessee.edu/system/files/knowledgebase/original/Healthcare%20Reform%20and%20W-2s.pdf
[3] http://www.irs.gov/uac/Form-W-2-Reporting-of-Employer-Sponsored-Health-Coverage
[4] http://www.mtas.tennessee.edu/
[5] http://www.mtas.tennessee.edu
[6] http://www.mtas.tennessee.edu/public/web.nsf/Web/Human+Resources
DISCLAIMER: The letters and publications written by the MTAS consultants were written based upon the law at the time and/or a specific sets of facts. The laws referenced in the letters and publications may have changed and/or the technical advice provided may not be applicable to your city or circumstances. Always consult with your city attorney or an MTAS consultant before taking any action based on information contained in this website.
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