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| Under the Affordable Health Care Act, employers will be required to report the value of health care benefits. For 2011, employers may voluntarily report the value of health care benefits for each employee. This amount will appear on the new 2011 form W-2 to be issued in 2012. This is a reporting item and will not affect taxable income. For 2012, the reporting is required for all employers except small employers filing fewer than 250 W-2 forms.
If you have questions about how to do this, please contact our office. |
Archive for the ‘Employee Benefit Plans’ Category
Employers Health Care Benefits Reporting Requirements
Thursday, May 5th, 20112011 Changes to Flexible Spending
Tuesday, October 5th, 2010|
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The Affordable Care Act, enacted in March, established a new uniform standard that, effective January 1, 2011, applies to Flexible Spending Arrangements (FSAs) and health reimbursement arrangements (HRAs). Under the new standard, the cost of an over-the-counter medicine or drug cannot be reimbursed from the account unless a prescription is obtained. The change does not affect insulin, even if purchased without a prescription, or other health care expenses such as medical devices, eye glasses, contact lenses, co-pays, and deductibles. The new standard applies only to purchases made on or after January 1, 2011, so claims for medicines or drugs purchased without a prescription in 2010 can still be reimbursed in 2011, if allowed by the employer’s plan. |
Watch Out for IRS 401(k) Plan Questionnaires
Tuesday, June 22nd, 2010|
Daniel Weintraub, CPA, Partner |
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The Internal Revenue Service (IRS) has begun sending out questionnaires and letters to 1,200 randomly selected 401(k) plan sponsors. Employee Plan Examinations previously conducted by the IRS indicate that 401(k) plans are by far the most non-compliant plan type in the retirement plan universe. These plans have a significant impact on the health of private retirement in America and make up over 60% of the retirement plan universe. It is important that they maintain the highest level of compliance possible: the Questionnaire is intended to assist the IRS in identifying compliance areas where additional education, guidance and enforcement are needed. |
