W-2 rule causes confusion
Starting with W-2s issued for the year 2011, employers will be required to report the value of health insurance premiums provided for each employee. Reports indicating that these amounts will be taxable to employees are incorrect. Though the value of health coverage provided by employers must be listed separately on the W-2, it will not be added to taxable wages. Congress wanted to tell employees how much is being spent on their health benefits.
