Q.- I heard that we have to report the cost of health coverage on an employee’s W-2. Is this correct?

A.- Yes, but only if you are an employer that filed 250 or more W-2 Forms in 2019. The Affordable Care Act requires employers to report the cost of coverage under an employer-sponsored group health plan on an employee’s Form W-2. The cost includes both the employer and employee cost of coverage. 

If you filed fewer than 250 W-2 Forms in 2019, you will not have to report the cost of health coverage.