We termed several employees and offered them a severance agreement along with employer paid COBRA. Should the COBRA paid by the employer be included in box 12 DD of the employee's W-2?
Yes, COBRA paid by the employer for continuation of major medical insurance coverage should be included in the employee's W-2, box 12, Code DD.See this IRS link for more information:Form W 2 Reporting of Employer Sponsored Health Coverage