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W2 Reporting


Beginning in 2012, as part of the Health Care Reform, employers who issue 250 or more W-2 statements in a previous calendar year, are required to report the aggregate cost of applicable employer-sponsored coverage on an employee's W-2 statement. The disclosure should be provided to employees no later than January 31st of the calendar year for which it is reporting.

 

The requirement to report the aggregate cost of employer-sponsored coverage on an employee's W-2 is an employer reporting requirement, not a TPA reporting requirement. Meritain will not take the responsibility for preparing and/or issuing W-2's on behalf of its clients, however, Meritain will provide the health benefits data necessary for customers to fulfill their W-2 reporting requirements.

 

Optional or Excluded Plans

 

Coverage Type

Do Not Report

Optional

Dental or vision plan not integrated into another medical or health plan

 

X

Health Flexible Spending Arrangement (FSA) funded solely by salary-reduction amounts

X

 

Health Reimbursement Arrangement (HRA) contributions

 

X

Health Savings Arrangement (HSA) contributions (employer or employee)

X

 

Hospital indemnity or specified illness (insured or self-funded), paid on after-tax basis

X

 

Employee Assistance Plan (EAP), on-site medical clinics and Wellness programs providing applicable employer-sponsored healthcare coverage

 

Optional if employer does not charge a COBRA premium

Multi-employer plans

 

X

Governmental plans providing coverage primarily for members of the military and their families

X

 

Federally recognized Indian tribal government plans and plans of tribally charted corporations wholly owned by a federally recognized Indian tribal government

X

 

Self-funded plans not subject to Federal COBRA

 

X

Accident or disability income, Long Term Care

X

 

Liability insurance or Supplemental liability insurance

X

 

Workers' compensation or Automobile medical payment insurance

X

 

Excess reimbursement to highly compensated individual, included in gross income

X

 

Payment/reimbursement of health insurance premiums for 2% shareholder-employee, included in gross income

​X

 

Reporting to the Internal Revenue Service (IRS)

A client will report this information on an employee's W-2 report using Box 12 and Code DD.

 

Services Meritain Provides

If a client requests a W-2 report, Meritain clients will receive the W-2 report using the COBRA applicable premium reporting method. There will be two forms of reports available dependent upon whether Meritain administers COBRA for the group.

 

For groups which have Meritain administering their COBRA, the report will include the subscriber's name, social security number, type of coverage the subscriber had during the year and for what months, the total aggregate cost of employer sponsored coverage and the amount of the COBRA premium.

 

For groups which do not have Meritain administering their COBRA, the report will include the subscriber's name, social security number, type of coverage the subscriber had during the year and for what months. The total aggregate cost of employer sponsored coverage will be marked not applicable.

 

This content is being provided as an informational tool. It is believed to be accurate at the time of posting and is subject to change. It is recommended that plans consult with their own experts or counsel to review all applicable federal and state legal requirements that may apply to their group health plan. By providing this information, Meritain Health is not exercising discretionary authority or assuming a plan fiduciary role, nor is Meritain Health providing legal advice.