On Oct. 12, 2010, the IRS published IRS Notice 2010-69, providing interim relief to employers by initiating a one-year delay of the new requirement that employers report the cost of coverage under an employer-sponsored group health plan on Form W-2. The notice makes the new reporting requirement optional for employers in 2011.

Under the new reporting and disclosure requirements created by this year’s health reform legislation, employers were previously required to include the value of employer-provided coverage on their forms.

The IRS indicated that the delay was prompted in an effort to give employers additional time to update payroll systems and administrative procedures in preparation for compliance with the new reporting requirement. The IRS also emphasized that the W-2 reporting requirement is for informational purposes only, and that the amounts reported on the forms will not be taxable.

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