w2 Aggregate cost of coverage
The Affordable Care Act requires employers to report the aggregate cost of employer-sponsored group health plan coverage on their employees' Forms W-2. The purpose of the reporting requirement is to provide information to employees regarding how much their health coverage costs.
General Requirements
All employers must provide W-2s to employees for the prior calendar year.
In addition to compensation and withheld taxes, W-2s also must include information on certain employee benefits, such as imputed income for group-term life insurance and domestic partner coverage, employer HSA Contributions and Dependent Care FSA contributions.
Employers who furnished at least 250 W-2s for the prior year must include in the employee's W-2s the total cost of employer-provided group health coverage (Box 12, use Code DD).