W-2 Reporting: How is the benefit calculated for an eligible employee who changes benefit levels during the year?

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What if the employee's coverage changed from single to family?

Written by Support

Updated over 5 years ago

The amount reported on the W-2 will be prorated to reflect the change the employee made during the year.

Example: Employer provides a QSEHRA with a self-only permitted benefit of $3,960 and a family permitted benefit of $8,040. John Employee enrolls in self-only coverage from January 1 through July 31 and in family coverage from August 1 to December 31.

On the W-2, the employer reports a permitted benefit of $5,660 (($3,960 x 7/12) + ($8,040 x 5/12)).