Yet another cost of health reform?

Is this correct? If so, maybe the health care reform bills, HR 3590 and HR 4872, weren't such a good idea.

Starting January 01, 2011, a company has to report, per employee, the contribution it makes to the company-sponsored health coverage package on each participating employee's W-2 form. Language to that effect appears in Section 9002, Subtitle A - Revenue Offset Provisions, Title IX - Revenue Provisions of the HR 3590 bill, without redaction in the HR 4872 bill.

The section above did have a couple of exclusions, but nothing for regular employees; and the IRS Code of 1986 doesn't address this new requirement.

It appears, therefore, starting January 2011 the employees with company-sponsored health coverage will have to pay taxes on the company contributions to that coverage. I don't know if companies will be required to report it on each paycheck or just put it on our W-2s in boxes 1, 3 5 at the end of the year.

For your information, 1 is total wages, 3 is Social Security eligible wages and 5 is Medicare eligible wages. My guess is other taxes like FUTA, SUTA and local taxes will also come into the picture.

Bob Druktanis

Lindenhurst