Tuesday, October 12, 2010

IRS releases draft Form W-2 and delays implementation for employers

The IRS today issued a draft Form W-2 for 2011, which employers use to report wages and employee tax withholding. The IRS also announced that it will defer the new requirements for employers to report the cost of coverage under an employer-sponsored group health plan, making that reporting optional for employers in 2011.

The Treasury Department and the IRS have determined that this relief is necessary to provide employers time to make changes to their payroll systems and procedures to comply with the new reporting requirement. The IRS will be publishing further guidance later this year. The IRS continues to stress that the amounts reportable are not taxable.

For more information, please refer to the IRS Brief, IRS Notice 2010-69, and the Draft Form W-2.

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