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January 1, 2013
Healthflexible spendingarrangement contribution
limit
TheACA limits the amount of participant pre-tax dollars
that can be used to cover health expenses through flexible
spending accounts (FSAs). FSAparticipants have a salary
reduction limit of $2,500 for plan years beginningon or
after January 1, 2013.
13
W-2 reporting requirement
All employers that issued at least 250 FormW-2s
in 2011will need to report the value of health care
coverage that employees participated in during the 2012
plan year on the employee’s FormW-2. Some items,
such as stand-alone dental, vision, and health savings
account contributions, are excluded from this reporting
requirement. Although the valuemust be reported, it is not
taxable for the business or employee.
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Future regulatory
guidance could require small businesseswith fewer than
250 employees tomeet theW-2 requirement.
10
Medicare retireedrug subsidy taxdeduction
eliminated
Employerswill no longer be able todeduct retiree drug
expenses for which they receive aMedicarePart D retiree
drug subsidy payment.
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