If your company suspected the Supreme Court would overturn President Obama’s Affordable Care Act, you may find yourself scrambling in the second half of this year.
The highest court in the land failed to negate any of the employer provisions of the health reform law.
And while most of the changes don’t kick in until 2014 (and rest assured, you’ll have plenty to do to get ready for that), there are a few provisions that are effective even sooner.
We’ve highlighted what will be expected of you, in the order you’ll have to execute it. And we’ve included any IRS resources already out there to help your company get on board.
Take a look to make sure you and your staffers are on track heading into Part 2 of 2012:
Up first: W-2 reporting on healthcare costs
What’s expected of you: Report the cost of healthcare expenses on each of your employees’ W-2s.
When you have to do it: This winter. The regs are required for Tax Year 2012 information returns, which are due in early 2013.
What you have to make sure employees understand: Your company won’t be taxing employees on these expenses – the reporting is for informational-purposes only. That will be a huge relief for many.
What will help your compliance: IRS recently issued a matrix to help employers understand which medical expenses must be reported, and which don’t have to be. You can access it here.
Up next: Cap on flex spending account limits
What’s expected of you: Your company may only allow employees to sock away up to $2,500 for expenses reimbursable under their flexible spending accounts (FSAs).
When you have to do it: Jan. 1, 2013. The new limits begin with this coming new calendar year.
What you have to make sure employees understand: If your company allows employees to carry over money into the following calendar year, reassure folks that money won’t count towards the $2,500 cap for that new year.
What will help your compliance: IRS recently addressed some of the biggest questions employers are having when it comes to the new requirements in Notice 2012-40. You can access it here.