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On October 12, 2010, the IRS announced that it will defer the new requirement for employers to report the cost of coverage under an
employer-sponsored group health plan until 2012 W-2's and making the reporting optional on W-2's in 2011.
Although reporting the cost of coverage will be optional with respect to 2011, the IRS continues to stress that the amounts
reportable are not taxable. Included in the Affordable Care Act passed by Congress in March, the new reporting requirement is intended
to be information only and to provide employees with greater transparency into overall health care costs.
IRS Notice 2010-69 provides interim relief to employers, which were necessary to allow additional time to make any changes to their
payroll systems or procedures in preparation for compliance with the reporting requirement. The IRS anticipates issuing guidance on
the reporting before the end of the year. Once final details are avialable from the IRS, Keystone Payroll will work with our software
vendor to provide optional reporting on 2011 W-2's. Keystone Payroll will provide additional updates as information becomes available.
Additional information is available at the IRS website.
As always, if you should have any questions, please do not hesitate to contact us.
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