Employer contributions to employee health insurance must be:

Question

Quizplus · Accepted Answer

Employer contributions to employee health insurance are reported in Box 12, Code DD of the employee's W-2 form. This reporting requirement became effective in 2012 as a result of the Affordable Care Act. These contributions are not taxable for federal income tax purposes, but they may be taxed at the state level depending on the state's tax laws. Reporting this information in Box 12, Code DD allows employees to more easily understand the value of their employer-sponsored health insurance coverage.

Employer Contributions to Employee Health Insurance Must Be