by Mark Jones
How do you plan on complying with the new Affordable Care Act provisions? Don’t worry, you’ve got some time to consider it, but it doesn’t hurt to start looking into options now.
Enacted on March 23 of this year, the Affordable Care Act requires all employers to start reporting the value of health insurance. Here’s a brief excerpt from a related IRS article:
Starting in tax year 2011, the Affordable Care Act requires employers, including all nonprofits to report the value of the health insurance coverage they provide employees on each employee’s annual Form W-2. This reporting is for informational purposes only, to show employees the value of their health care benefits so they can be more informed consumers. The amount reported does not affect tax liability, as the value of the employer contribution to health coverage continues to be excludible from an employee’s income and it is not taxable.
If you use an outside payroll service, they will most likely contact you regarding what you will need to provide so that the required information can be included in your payroll data. If, however, you process your payroll in-house, you will have the fun task of figuring out how to fulfill this new requirement on your own.
We have until January 2012 to include this information on the W-2s we provide our staff, but it’s never too early to start thinking about it.
Do you have any easy ideas for making this transition at your ministry? Share them! I’d love to hear your comments!