What's New: New W-2 rule causes confusion

Starting with W-2s issued for the year 2011, employers will be required to report the value of health insurance premiums provided for each employee.

Reports indicating that these amounts will be taxable to employees are incorrect. Though the value of health coverage provided by employers must be listed separately on the W-2, it will not be added to taxable wages. Congress apparently wanted employees to be aware of how much their employer is spending on their health benefits.

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