Employers who file 250 or more W-2s in any given year are required to furnish the IRS (and their employees) with health insurance information on the following year's W-2s.
For example, if you filed 250 or more W-2s in 2016, then the IRS will expect to see health insurance information on your employees 2017 W-2s in Box 12 with code DD. What they want you to report is the total health insurance premium paid for each employee during the 2014 calendar year.
Answers to common follow-up questions:
- You need only report the premiums for health insurance. You should not include dental, vision, or any supplemental insurances in the reporting.
- The IRS wants you to report the total premium, regardless of what the employee and employer portions were.
- To report this information to DPS, send a spreadsheet with the employee number, employee name, and total premium amount to firstname.lastname@example.org by January 15th of the following year (so, January 15th, 2018 for 2017 W-2s).
Please note: If you are signed up for our Benefits Administration services and ACA Compliance, you may have your iSolved environment set up to automatically accrue and report this information. Contact email@example.com for more information.