Are your employees aware of the new ACA (Affordable Care Act) tax forms they will need to file their 2015 income tax returns? We've been talking about it for ages, but now the time is almost here — and your employees will be confused by the possible myriad of new ACA tax forms they and their dependents may be receiving. The following is a sample communication that you may consider using to let employees know about these new forms — and to warn them not to throw them away! We hope you find this sample communication piece to be helpful. Eastern Benefits Group clients and friends may contact their Eastern Benefits Group representative for the original Word version of this memo. Remember to edit as necessary.
SAMPLE MEMO WORDING FOR ACA TAX FORM COMMUNICATION TO EMPLOYEES
(Remove this before sending to employees: This sample wording is provided as a courtesy to clients and friends of Eastern Benefits Group. It should not be construed as legal or tax advice. It is intended to be a helpful communication tool only. It is not all inclusive of all information regarding the ACA or the tax forms associated with the ACA.)
Regarding: New Tax Forms - Don't Throw Them Away!
We wanted to make you aware of some new tax forms that you may be receiving this year. It is important for you to look for these forms and not throw them away. You will need them when filing your 2015 income taxes. All forms will be mailed to you (if applicable) during the month of January 2016.
As you may know, under the Affordable Care Act (also known as the ACA or Obamacare), everyone must now carry health insurance in the United States or face a possible tax penalty for not doing so. In order to prove your health insurance status for the tax year of 2015 you may receive up to 3 different types of IRS Forms 1095.
Form 1095-A: You will receive this form only if you or a family member enrolled in health insurance coverage through your state or federal “Health Insurance Marketplace” (also known as an Exchange or Connector). The Form 1095-A provides information needed to complete Form 8962 in order to receive a Premium Tax Credit (PTC) subsidy from the federal government.
Form 1095-B: These forms are typically issued by health insurance carriers (I.e., Blue Cross Blue Shield) and are used to report whether or not and during which months of the year you and your dependents had health insurance coverage. It also indicates if the coverage you had met IRS “minimum essential coverage” standards.
Form 1095-C: These forms are issued by Applicable Large Employers to their full time employees only. Applicable Large Employers are employers that are deemed to have 50 or more (full time + full time equivalent) employees. XYZ Co is / is not an Applicable Large Employer and will / will not be issuing these forms to all of employees who work an average of30 or more hours per week. The purpose of the Form 1095-C is to show the IRS whether an offer of health insurance coverage was made by the employer to its full time employees and also what the monthly cost of that coverage would be for a single person. It also indicates the same info as a form 1095-B if the employer has a self-insured group health plan.
Lastly, for our Massachusetts employees, please note that you will still receive a Massachusetts Form 1099-HC if you and/or your family members were enrolled in health insurance coverage. This is a state specific form required to file your Massachusetts state income tax return.
It is possible that you and/or your family members could receive one or more of each of these forms. Do not throw them away. You will need them to complete your 2015 income tax returns. Also, please note that XYZ Company cannot give you tax advice. If you have tax questions, please seek assistance from the IRS or a tax professional.
For more information regarding these forms please feel free to visit the links below:
Form 1095-A: www.irs.gov/uac/About-Form-1095-A
Form 1095-B: www.irs.gov/Affordable-Care-Act/Individuals-and-Families/Understanding-Your-Form-1095B
Form 1095-C: www.irs.gov/Affordable-Care-Act/Individuals-and-Families/Understanding-Form-1095C