Federal Healthcare Reform legislation (Patient Protection & Affordable Care Act) creates some compliance issues that will begin impacting household employer's payroll recordkeeping in 2012. Effective January 1, 2012, all employers must report the total cost of all “applicable employer-sponsored coverage” provided to an employee for health insurance on the employee's Form W-2. Any non-taxable payments or reimbursements that the household employer makes to their employee(s) for health insurance coverage must be reported. If the employee pays for (funds) any part of his/her health insurance coverage that is partially sponsored by the employer, the total premium cost must be reported.