The IRS just issued the draft Form W-2 for 2011, and the White House announced that it will defer the new requirement for employers to report the cost of coverage under an employer-sponsored group health plan, making that reporting optional in 2011.

According to a statement from the Treasury Department and IRS, the Administration has determined that employers may need time to make changes to their payroll systems or procedures in preparation for compliance with the new reporting requirement. The IRS will publish guidance on the new requirement later this year.

The draft Form W-2 includes the codes that employers will use to report the cost of coverage. The amounts reportable are not taxable and that the reporting is intended to be informational only and to provide employees with greater transparency about overall health care costs.