New IRS Form 1095-C Required for UW Employees
December 2, 2015
Beginning in 2016, The University of Wisconsin (UW) is providing IRS Tax Form 1095-C to UW employees who were full time (as defined as by the Affordable Care Act) for all or some months of 2015, or who were otherwise offered insurance by the UW. Employees will need the 1095-C as part of their documentation requirement for their 2015 taxes. Form 1095-C does not include information about actual health insurance coverage provided, but simply documents that coverage was offered.
The UW will also file Form 1095-C with the IRS to report and document that all UW employees who met the Affordable Care Act (ACA) eligibility requirements were offered health insurance coverage during the previous calendar year (2015).
The IRS 1095-C tax form requirement is part of the shared responsibility provision of the Affordable Care Act. Form 1095-C will assist the IRS in establishing that ACA obligations have been met for both the employee and the employer. It will also determine whether employees and/or employers are subject to penalties under the ACA’s individual and employer mandates.
Unless they fall within an exception category, the employee must comply with the Individual Mandate: maintaining minimum essential health insurance coverage. Failure to satisfy this obligation may result in a tax penalty.
The employer must comply with the Employer Mandate: offering health insurance coverage to eligible employees who are classified as full-time under the ACA. Failure to satisfy this obligation may result in a tax penalty.
Employees will receive Form 1095-C in early February 2016. The UW has contracted the mailing distribution of the 1095-C forms to a third-party vendor, Businessolver. The return address on the envelope you receive will reflect this. An electronic copy of the form will also be available in early February on the MyUW and UW System 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 corresponding employee. 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. Form 1095-B must be postmarked and sent to employees no later than March 31, 2016.
For more information visit: https://www.wisconsin.edu/ohrwd/aca/ where you will find an FAQ regarding the ACA requirements as well as other resources.
Source: UW Service Center
Categories: Tax