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Issue Number: HCTT-2015-78
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Health Care Law: Tax Considerations for Employers with Fewer than 50 Employees
Some of the tax provisions of the Affordable Care Act apply only to employers with fewer than 50 full-time or full-time equivalent employees.
Employers with fewer than 50 employees should take note of these tax considerations:
All employers, regardless of size, that provide self-insured health coverage must annually file information returns for individuals they cover. The first returns are due to be filed in 2016 for the year 2015.
The cost of these health care benefits will be reported in box 12 of the Form W-2, with Code DD to identify the amount. In general, the amount reported should include both the portion paid by the employer and the portion paid by the employee. In the case of a health FSA, the amount reported should not include the amount of any salary reduction contributions.
For more information, see the Affordable Care Act Tax Provisions for Small Employers page on IRS.gov/aca.
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