Communication Plan and Resources to Help Employees Navigate the Form 1095

Transcription

1 Communication Plan and Resources to Help Employees Navigate the Form Because many employees are still unfamiliar with IRS Form -C, it is important to provide education about the new tax form. Equifax has created a sample communication plan with resources to help employers prepare employees for the and answer some of their most frequently asked questions. For more information visit

2 Table of Contents 3 Sample Communication Plan 4 Templates 7 Announcement Poster 8 FAQs 10 Envelope Insert

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4 Template October/November To: Employee Name From: Date: October/November 1, 2017 Subject: IMPORTANT NOTICE: -C tax form for the 2017 tax year NOTICE TO ALL EMPLOYEES: IMPORTANT TAX FORM FOR THE 2017 TAX YEAR Beginning in January 2018, some employees will receive a tax form called the -C that will contain important information about their health care coverage. If you receive a - C, keep it with your tax records. Employees who will receive the form include those who: Were enrolled in health care coverage from <Employer Name> at any point in 2017 Worked an average of 30 or more hours per week or were considered a full-time employee in 2017 Employers are required to send the -C to these employees as part of the new health care law, also called the Affordable Care Act or Obamacare. You can view the blank form here on the IRS website. We will continue to keep you informed on this important tax document. For questions, please contact: <Contact Information>. EXAMPLE: Template 4

5 Template December To: Employee Name From: Date: December 1, 2017 Subject: IMPORTANT NOTICE: -C tax form for the 2017 tax year NOTICE TO ALL EMPLOYEES: IMPORTANT TAX FORM FOR THE 2017 YEAR Beginning next month, some employees will receive a tax form called the -C that will contain important information about their health care coverage in Employees who will receive the form include those who: Were enrolled in health care coverage from <Employer Name> at any point in 2017 Worked an average of 30 or more hours per week or were considered a full-time employee in 2017 If you receive a -C, keep it for your records. You may use information from your - C to help complete your tax return. Information from the form may also be used to help determine your eligibility for a premium tax credit. The attached document contains frequently asked questions and answers about the - C to provide a better understanding of the form and what to do if/when you receive one. You can also view the blank form here on the IRS website. For questions, please contact: <Contact Information>. EXAMPLE: Template 5

6 Template January-February To: Employee Name From: Date: January 1, 2018 Subject: IMPORTANT NOTICE: -C tax form for the 2017 tax year NOTICE TO ALL EMPLOYEES: IMPORTANT TAX FORM FOR THE 2017 TAX YEAR Between now and January 31, 2018, some employees will receive a tax form called the -C that will contain important information about their health care coverage in Employees who will receive the form include those who: Were enrolled in health care coverage from <Employer Name> at any point in 2017 Worked an average of 30 or more hours per week or were considered a full-time employee in 2017 If you receive a -C, keep it for your records. You may use information from your - C to help complete your tax return. Information from the form may also be used to help determine your eligibility for a premium tax credit. The attached document contains frequently asked questions and answers about the - C to provide a better understanding of the form and what to do if/when you receive one. You can also view the blank form here on the IRS website. If you believe you should get a -C but do not receive one by January 31, 2018 please contact < Name and Contact Information>. EXAMPLE: Template 6

7 Important Announcement: Form -C for the 2017 Tax Year C 2017 The Affordable Care Act, also called Obamacare, requires employers to send a tax form called the -C to certain employees. C The -C will contain detailed information about health care coverage that you had or were offered in You should receive a -C if you were full-time (worked an average of 30+ hours per week) or were enrolled in your employer s health insurance plan at any time during $ Information from the form may be used to help determine your eligibility for a premium tax credit for health insurance purchased through a Health Insurance Marketplace.? For questions, contact <Contact Information>. You may also visit or to learn more. EXAMPLE: Form Poster 7

8 FAQs Starting in January 2018, some employees may receive a tax form called the -C that contains detailed information about health care coverage that they had or were offered in Here are a few frequently asked questions and answers about the -C to help provide a better understanding of the form and what to do when/if you receive one. C 1 What is the Form -C? 2 Who receives a Form -C? The Affordable Care Act, or Obamacare, requires employers to send a tax form called the -C to certain employees. The -C contains detailed information about the health care coverage offered by your employer that you may need when you file your individual income tax return. Information from the form may also be used to help determine your eligibility for a premium tax credit (subsidy). As with any important tax document, you should keep the form(s) for your records. 3 Why did I get a Form -C? Employers with 50 or more full-time equivalent employees are required to send -Cs to any employee who was full-time (worked an average of 30 or more hours per week) or who was enrolled in their health insurance plan for any month in Why did I get more than one Form -C? If you worked at more than one company or franchise, you may receive a -C from each company/employer. If you were full-time (worked an average of 30 or more hours per week) or were enrolled in health insurance through your employer at any time during 2017, you should receive a -C. 6 Do I need my Form -C to file my taxes? 5 What should I do with my Form -C? No, individuals do not need to send a copy of their -C to the IRS when filing their tax returns. However, you should keep the form with your tax records. Keep your -C for your records with your other important tax documents. While you will not need to attach your -C to your tax return or send it to the IRS, you may use information from your -C to help complete your tax return. EXAMPLE: FAQs 8

9 7 What if I have questions? 8 When will I get my Form -C? If you have additional questions about your -C, please contact <Contact Information>. You may also visit gov or to learn more. You should receive your -C for the 2017 tax year on or before January 31, If you believe you should have received a -C but did not, please contact < Name and Contact Information>. Why didn t I get a 9 Form? 10 What information is on the Form -C? If you were not full-time (worked an average of 30 or more hours per week) and were not enrolled in health care coverage through your employer at any time during 2017, you should not receive a -C. You may also not receive a -C if you were not the primary insured. 11 Will I be fined if I did not receive a Form? In some cases you can claim a health care coverage exemption for the months without coverage if you or any family members did not have coverage for the entire year. You can use the IRS Health Coverage Exemptions Form 8965 to find out if you qualify. If you or any family members did not have coverage or an exemption, you may have to make an individual shared responsibility payment. Please visit or to learn more. 13 What is the difference between a -A, -B, and -C? There are three parts to the form: Part 1: reports information about you and your employer. Part 2: reports information about the coverage offered to you by your employer, the affordability of the coverage offered, and the reason why you were or were not offered coverage. Part 3: reports information about the individuals (including dependents) covered under your self-insured plan. 12 How will the Form Impact my taxes? If you do not have health care coverage and do not qualify for an exemption, you may be subject to a fine when you file for your 2017 tax return. Or, if there s a discrepancy in the information that you and your employer report to the IRS about the health care coverage offered to you, your tax return may be delayed. The forms are very similar. The main difference is who sends the form to you. The entity that provides you with health insurance will be responsible for sending a Form. You will receive a -A if you were covered by a federal or state marketplace (also called an exchange) You will receive a -B if you were covered by other insurers such as small self-funded groups or employers who use the Small Business Health Options Program (SHOP). You may also receive a -B from your insurance carrier if you are enrolled in a fully-insured employer sponsored plan. You will receive a -C if coverage was provided by your employer EXAMPLE: FAQs 9

10 All About the -C The Affordable Care Act, also called Obamacare, requires employers to send a tax form called the -C to certain employees. If you re not sure why you are receiving this form or unsure of what to do next, keep reading for answers to frequently asked questions. C What is a Form -C? Why did I get a Form -C? Why did I get more than one Form -C? The -C contains detailed information about the health care coverage offered by your employer that you may need when you file your individual income tax return. Information from the form may also be used to help determine your eligibility for a premium tax credit. As with any important tax document, you should keep the form(s) for your records. If you were full-time (worked an average of 30 or more hours per week) or were enrolled in health insurance through your employer at any time during 2017, you should receive a -C. If you worked at more than one company or franchise, you may receive a -C from each company/employer. What should I do with my Form -C? What information is on the Form -C? Why was Part 3 of my -C left blank? Keep your -C with your other important tax documents. While you will not need to attach your -C to your tax return or send it to the IRS, you may use information from your -C to help complete your tax return. There are three parts to the form: Part 1: reports information about you and your employer. Part 2: reports information about the coverage offered to you by your employer, the affordability of the coverage offered, and the reason why you were or were not offered coverage. Part 3: reports information about the individuals (including dependents) covered under your self-insured plan. Part 3 of your -C will be left blank if: No one was enrolled in coverage for any part of the year The coverage is through a fully-insured plan The coverage is through COBRA You are a union employee How will the Form impact my taxes? Do I need my Form -C to file my taxes? What if I have questions? If you do not have health care coverage and do not qualify for an exemption, you may be subject to a fine when you file for your 2017 tax return. Or, if there s a discrepancy in the information that you and your employer report to the IRS about the health care coverage offered to you, your tax return may be delayed. No, individuals do not need to send a copy of their -C to the IRS when filing their tax returns. However, you should keep the form with your tax records. If you have additional questions about your -C, please contact <Contact Information>. You may also visit or to learn more. Copyright 2017, Equifax Inc., Atlanta, Georgia. All rights reserved. Equifax is a registered trademark of Equifax Inc EXAMPLE: Form Envelope Insert 10