Employee Relations 11/02/2012
Reminder: 2013 W-2s Must Include Group Health Plan Coverage Cost
Starting with taxable year 2012 (W-2s are due in January 2013),
the Patient Protection and Affordable Care Act requires that
employers sponsoring group health plans, including federal, state
and local employers that filed at least 250 W-2s in the previous
year, include the value of the group health plan benefits on
employees’ W-2s. The value must be reported in Box 12 of the W-2
and include both the portion paid by the employer and, if
applicable, that paid by the employee.
What Must Be Included:
- Major medical.
- Health Flexible Spending Account (FSA) values for the plan year in excess of the employee’s cafeteria plan salary reductions for all qualified benefits.
- Hospital indemnity or specified illness paid through salary reductions or by the employer.
- Employee Assistance Plan, onsite medical clinics and wellness programs if the employer charges a COBRA premium.
- Domestic partner coverage included in gross income.
Among other things, the employer is NOT required to report: FSAs funded only by salary reductions, health savings accounts funded by the employer or employee, and long-term care and workers’ compensation insurance.
Workers’ Comp Reform Update
Counties will recall that Governor Brown signed Senate Bill 863
(Chapter 363, Statutes of 2012) in early September, the
CSAC-supported workers’ compensation reform measure that, among
other things, increased permanent disability benefits to injured
workers while making necessary administrative and procedural
changes within the system.
Much of the reform that will lead to cost savings for employers requires regulatory action to be taken by the Department of Industrial Relations (DIR) and the Division of Workers’ Compensation (DWC). Accordingly, those departments formed working groups in early October to address implementation of the bill. As SB 863 requires certain aspects of the measure to be in effect next year, DIR intends to adopt several of the regulations on an emergency basis to ensure that they take effect January 1, 2013. The emergency regulations include the implementation of the lien filing fee, the Independent Medical Review (IMR) and Independent Bill Review (IBR) processes and changes to the maximum amount and eligibility changes for supplemental job displacement vouchers.
Thus far, DIR has only released draft regulations for two areas: implementation of the ambulatory surgery center fee schedule and of the inpatient hospital fee schedule. Draft regulations are expected soon for the lien filing fee, vouchers, IMR and IBR. You may view DIR’s timeline of implementation here.
CSAC is working closely with other stakeholders to review, discuss and provide feedback to DIR regarding the implementation of SB 863. We will keep you apprised of further action taken.