Employer Mandate

Be Aware! Vermont Department of Taxes Employer Mandate; Vermont 2015 W-2 Requires All Employers to Report Aggregate Cost of Health Insurance.
be-aware-2Legislation enacted last year requires Vermont employers provide the aggregate cost of any employer sponsored health insurance on the employee’s 2015 W-2.
This reporting requirement applies to all employers who withhold income taxes. Unlike the federal requirement for employers that file 250 or more W-2’s, Vermont’s requirement is regardless of the number of W-2 forms that must be filed.
Vermont Department of Taxes announced the new employer reporting mandate, which requires ALL employers to report the aggregate (combined total of employee and employer contributions) cost of employer-sponsored health care on Form W-2, box 12, using code DD.

A similar mandate has been in place at the federal level since 2012 for employers who filed more than 250 Form W-2’s in the previous year. The new Vermont requirement applies to all employers, regardless of employee count or the number of previously filed Form W-2’s.
In general, the amount reported should include both the portion paid by the employer and the portion paid by the employee. According to the IRS an employer is not required to issue a Form W-2 solely to report the value of the health care coverage for retirees or other employees or former employees to whom the employer would not otherwise provide a Form W-2.

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