Leaderboard

Has the 2014 W-2 already been issued? If not, don't issue a corrected form, just issue a correct one.

They are correcting it like he never deferred due to the clerical error. You need to amend the W-2 since he didn't actually defer the 100% of pay previously reported on his W-2. If this didn't cross reporting years you could probably just fix in the next payroll cycle.

Clarifying Health. I suggest that you get some competent legal advice regarding these Zane items that you often link.

I'll just say this: I have struggled with that exact issue several times over the years and I have never been able to get completely comfortable with the position that it is not an acceleration.

I'd suggest hiring a firm to provide the documents. A POP doesn't cost much, and then you know the paperwork is right. After that, it's easy. Just have to make sure that payroll keeps the pre-tax part separate from the after-tax part of employees' pay. If possible, an automatic enrollment is easier (employees become participants whenever they are eligible for the health coverage). In this mode, employees must be offered the opportunity to waive participation.