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Oyees Forms W-2. The purpose of this reporting requirement is to provide information to employees regarding how much their health coverage costs. It does not mean that the cost of the coverage is taxable. What Information Must Be Reported? Employers must report the total cost of certain types of employer-sponsored health coverage. In general, this means coverage under group health plans. It does not matter whether the employer or the employee pays for the coverage it is the total cost of th.

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