Thursday, December 8, 2011

New Regs To Prep For: 5 Changes Coming in 2012

November 30, 2011 by Christian Schappel

The new year is just around the corner, and that means a slew of new regulations are about to take effect. Here is what’s on tap for 2012.
W-2 reporting requirements
Employers with 250 or more employees in 2012 will be required to report the cost of employee’s healthcare coverage on workers’ 2013 W-2s. 
Small employers can wait another year. Those issuing fewer than 250 W-2s aren’t required to obey the reporting requirements until 2013 W-2s are issued (in 2014). But the IRS has said the reporting requirement for small employers could be pushed back even further.
The requirement to report the cost of health coverage on employees’ W-2s has caused a lot of confusion among workers. One thing you’ll want to tell them: The W-2 reporting requirements do not make workers’ healthcare benefits taxable — they’re simply meant to let employees know how much their coverage costs.
401(k) fee disclosure rules
On Jan. 1, 2012, the retirement plan fee disclosure regs go into effect. But Uncle Sam has given employers 120 days after that date to comply — making the actual compliance deadline April 30, 2012.
Essentially, the rules require plan sponsors to disclose all fees and expenses to participants of 401(k)-type plans. fee disclosure regs
The feds hope that’ll make the plans easier for employees to understand so they can make more informed decisions about where and how to invest their money. 
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