Affordable Care Act Changes W-2 Reporting

On March 23, 2010, the U.S. government passed a health care law called the Affordable Care Act. The law was passed in an attempt to protect consumers and improve their health care choices. Various phases, including tax provisions, are being implemented over a four year period. In 2013, the Affordable Care Act changed the W-2 reporting requirements for businesses.

The 2013 Change for W-2 Reporting

In an effort to make consumers more aware of the value of their health care benefits, the Affordable Care Act now requires businesses to report the portion of health care they pay for the employee. When completing the employee’s Form W-2 each year, businesses are required to report the cost of employer-sponsored group health coverage in Box 12. This reporting is for informational purposes only and does not mean the funds paid by the employer will be taxable. The employer’s contribution will still be able to be excluded from the employee’s income.

Do Churches Need to Report Employer-Sponsored Health Coverage?

Reporting employer-sponsored health care coverage on Form W-2 is currently optional for businesses, including churches, if they filed fewer than 250 Form W-2s for the preceding year.

If you are a MinistryWorks customer and you choose to report the information, MinistryWorks will handle the reporting for you at no additional charge. Contact us at 866.215.5540 for more details.

Additional Resources

The information in this article is intended to be helpful, but it does not constitute legal advice and is not a substitute for the advice from a licensed attorney in your area. We strongly encourage you to regularly consult with a local attorney as part of your risk management program.

All insurance coverages are underwritten by various health insurance carriers and sold through Brotherhood Mutual Insurance Services, LLC.

You could claim up to $33,000/employee with the
Employee Retention Credit.

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