New IRS Form Required for UW Employees Filing 2015 Taxes
December 17, 2015
Beginning in 2016, the University of Wisconsin (UW) must file Internal Revenue Service (IRS) Form 1095-C with the IRS to report and document that full-time UW employees were offered health insurance coverage during the previous calendar year (2015).
The UW will also provide all UW employees who were full-time for all or some months of 2015 with a copy of their Form 1095-C. Employees will need the Form 1095-C they receive from the UW as part of their documentation requirement when filing their 2015 taxes. Form 1095-C does not include information about actual health insurance coverage provided, but simply documents that coverage was offered.
This new IRS tax form requirement is due to the Affordable Care Act (ACA). Form 1095-C will assist employees and the IRS in establishing that ACA obligations have been met for both the employer and the employee.
The employee must comply with the Individual Mandate: maintaining minimum essential health insurance coverage unless they fall within an exception category. Failure to satisfy this obligation may result in a tax penalty.
The employer must comply with the Employer Mandate: offering health insurance coverage to employees. Failure to satisfy this obligation may result in a tax penalty.
Employees will receive Form 1095-C by February 1, 2016. The UW has contracted the mailing distribution of the 1095-C forms to a third-party vendor, BusinessSolver. Please be aware that the return address on the envelope you receive may reflect this. An electronic copy of the form will also be available in the MyUW portals under Payroll Information, in the ‘Tax Statements’ tab.
Beginning in 2016, the insurance carrier must file Form 1095-B with the IRS, and provide a copy to each employee reflected on a Form 1095-B. This form reflects health insurance coverage provided to the employee during the previous calendar year.
Employees will receive Form 1095-B because the insurance carrier provided either the employee or their family member(s) with health insurance coverage during the previous calendar year. Form 1095-B documents employee compliance with the Individual Mandate. Employees will receive Form 1095-B by February 1, 2016.
UW employees will receive an email in January with additional information about the new tax forms and the ACA requirements.
Source: UW Service Center
Categories: Tax