Sunday, November 25, 2012

1 employee, 2 employers and health benefits: How many W-2s ...

Question: How do we report an employee?s health benefits if he transferred between two divisions of the same company, and each division has its own Employer Identification Number? Must each division report separately, or can we combine this information and report it on one W-2?

Answer: The IRS isn?t too choosy about this, since this reporting is for informational purposes only. As long as the employers are related, you can report the aggregate cost on one W-2 or split reporting between the benefits provided by each division. But whatever method you choose, use it to report health benefits for all employees who transferred between divisions this year.

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