W-2 Reporting of Health Coverage Cost

Employers filing 250+ W-2s in prior year must report the aggregate cost of employer-sponsored health coverage in Box 12 (Code DD). Informational only - does not make coverage taxable. Small employers (<250 W-2s) currently exempt. Note for ICHRA employers: W-2 reporting includes the employer's ICHRA contributions in Box 12, Code DD.

Current Fee / Rate Information

Reported in Box 12, Code DD of Form W-2. Informational only — not taxable to employees. Required for employers filing 250+ W-2s in the prior year. Includes employer and employee contributions.

Last reviewed: April 2026

Non-Compliance Penalties

Standard W-2 penalties apply: $60 per W-2 if corrected within 30 days, $120 if corrected by August 1, $310 thereafter (2024). Max $3,783,500.