You may recall that under the health care reform legislation, health care benefits provided by employers are subject to reporting on an employee's W-2 beginning in 2011.
On Tuesday, the IRS announced that it was delaying implementation of that reporting requirement, making it optional in 2011. You can read the notice and the IRS' reasoning behind this move here.
Additionally, the IRS has issued a DRAFT of its proposed modified Form W-2; Box 12 on the form is where the IRS has provided for valuation of health care benefits. Employers and interest groups are invited to comment on the form before the final version is issued.
This suspension of a component of health care reform is not entirely surprising. Many employers continue to maintain a "wait-and-see" posture while mid-term elections are held--the impact on the current health care reform legislation could be substantial if a new wave of politicians make Washington home in the coming months.
Stay tuned. . . .
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