1099 Reporting of Employer-Sponsored Coverage NOT Mandatory for 2011

….the IRS issued Notice 2010-69, which makes the reporting optional for 2011 Forms W-2, and indicated that guidance is coming later this year on what should be reported. Also, the IRS released the draft 2011 Form W-2 that indicates that the health care cost can be reported in existing Box 12, using new code “DD,” and makes it clear that this amount is not taxable income to employees.

This guidance is welcome relief for employers who were struggling with their payroll systems trying to figure out how to accommodate the requirement that the cost of health insurance benefits be included on 2011 statements. Previously, the requirements seemed to indicate that employers would have to make the cost of benefits available on W-2s as soon as February 2011, in order to accommodate workers who left a job mid-year, which would have posed a significant compliance burden.

From the National Association of Health Underwriters http://newsmanager.commpartners.com/nahuw/issues/2010-10-15/2.html