W-2 changes: A Q&A to help sort out the details

You may have noticed that your 2012 W-2 from Iowa State looks different than it has in the past. Here's a quick Q&A on the change, compiled by Mike Otis, director of human resource services, and Doug Anderson, program manager in the controller's department. Get your 2012 W-2 by logging in to AccessPlus (Employee tab > W-2).

I see a new code in box 12 of my 2012 W-2 -- code DD-Employer SPNSR HLTH CVG and amount. What is this?

The Patient Protection and Affordable Care Act (ACA) requires employers to report the cost of coverage under an employer-sponsored group health plan on an employee’s Form W-2 for 2012. If there is a value to report, it is shown in box 12 with the code DD.

Is this amount included in my taxable income for 2012?

No. The reporting on an employee’s W-2 is for informational purposes only. It is intended to show employees the value of their health care benefits so they can be more informed consumers. The reportable amount includes coverage for the employee and the employee’s beneficiaries and dependents. Only employees, not their beneficiaries and dependents, will receive the information.

Does the reported amount affect my tax liability?

No. The amount reported does not affect tax liability. The value of the employer excludible contribution to health coverage continues to be excluded from an employee's income.

What is not included as "applicable employer-sponsored coverage?"

The IRS has stated that applicable employer-sponsored coverage does not include:

  • Dental or vision coverage
  • The cost of ISU’s employee assistance program (EAP)
  • Long-term care coverage

Does the amount reported in box 12 differ among employees?

Yes. The amount reported in box 12 will depend on the medical plan you are enrolled in (e.g., PPO vs. HMO) as well as the level of your coverage (e.g., single coverage vs. family coverage).

Where can I get more information on this new W-2 reporting requirement?

We encourage employees with questions on IRS tax-reporting requirements to consult with their tax preparer or adviser. You also can review information on the IRS website