Affordable Care Act- Impact on 2014 W-2 and 1099 For Employers

The Affordable Care Act has brought many new changes to the Forms W-2 reporting. Employers must be aware of the reporting requirements as they head into the W2 filing season. The Act requires employers to report the cost of coverage on the Form W-2. Reporting the cost of health care coverage does not mean that the coverage is taxable. This reporting is for information purposes only and will provide employees useful and comparable consumer information on the cost of health care coverage.


W-2 Filing Tips and Important Dates

• It is mandatory for employers to report the cost of Coverage under an employer

sponsored health plan. This must be recorded on the W-2 form in Box 12.

• Employers need to make sure to provide employees with proper instructions for W-2’s.

• W-2s must be kept for 4 years after the due date.

• Employers must mail employee copies of W-2 by February 2, 2015

• Paper filing of Form W-2s to Social Security Administration must be sent by March 2, 2015.

Electronic filing is due by March 31, 2015.


2015 also brings new compliance rules for businesses when filing 1099s…

Form 1099 Filing Tips and Important Dates  

• The IRS continues its push for 1099 reporting for all payments to applicable vendors and


• Box 11 is now used to report foreign tax paid on payments reported on 1099 MISC.

• Box 12 used to enter the name of the foreign country of U.S. possession for which foreign

tax was paid.

• Businesses must provide recipients with proper instructions to file a Form 1099.

•1099s generally must be kept on file for 3 years after the due date of filing with IRS.

• Employers must mail Form 1099s to recipients by February 2, 2015.

• Businesses with 250 or more 1099s must file their forms electronically.

• Paper forms of 1099s W-2s must be sent by March 2, 2015 to IRS. Electronic filing is due

on March 31, 2015.


At Kasperek & Co. Accountants, we have staff knowledgeable in payroll preparation and filing (including the new requirements under the Affordable Car Act). Let us help you with your year-end needs!