How the Affordable Care Act changes Tax Reporting
Since the Affordable Care Act has been implemented many things remain uncertain surrounding its functionality. It has put many changes into action and also created many unforeseen externalities for Americans. However, one that was expected was its impact of tax reporting. In a fiscal year employees who make in excess of 200,000 earnings are mandated to bear the burden of a 0.9% withholding for Additional Medicare Tax. Although, simultaneously the social security withholding was reverted back to 6.2% for year 2013. Secondly, particular employers must report the “cost of coverage” to make the benefits they receive for their healthcare payouts more visible. This is only for employers who fall under the category of reporting more than 250 W-2 forms.
Furthermore forms 1098, 1099, 1096 forms have undergone changes in 2013. Visit the IRS website to read the detailed changes for each form.
Source: CPA Practice Advisor