Affordable Care Act
The Federal Affordable Care Act (ACA) requires employers with temporary employees who work over 129 hours in a 12 month measurement period to offer those employees medical benefits.
The IRS has issued several clarifications over the past year. One recent change is in the measurement periods. Newly hired employees have their unique initial measurement period, but join the County's standard measurement period of January 1 every year.
What this means is that if temporary employees work many hours in a few months, your department may not have ample time to adjust the hours in time to keep the average hours worked under 129 hours per month.
Payroll Coordinators will receive a report after the first payroll of every month listing temporary and seasonal employees and their hours worked in their individual 12 month measurement period. The measurement period begins the first day of the month following employment.
Temporary employees who work an average of 29 hours per week or 129 hours or more per month over their 12 month measurement period qualify for medical benefits. Employees who qualify are offered Traditional PPO or High Deductible Plan medical benefits and an H S A if they elect a High Deductible Plan.
1. What is a 1095-C?
The 1095-C contains medical coverage information, and the IRS does not require you to have the form to file your 2017 taxes. It contains your personal information, along with the months you were either offered or enrolled in qualified medical insurance.
2. Who will receive a 1095-C from the County?
- Anyone who was employed as Full-Time in 2016, regardless of medical coverage
- Individuals that were in County medical coverage in 2016, which includes Part-Time Employees
- Long-Term Disability participants, COBRA participants, and Retirees under age 65
3 . Who will not receive a 1095-C from the County?
- Retirees under age 65 who are not covered by the County’s medical insurance
- Temporary or Seasonal employees who have not qualified for medical coverage
- Retirees over age 65
4. Is there personal information on the 1095-C?
Yes. The 1095-C is similar to a W-2 and contains information that should be kept secure. Sections I and III contain the name, Social Security Number and date of birth for you and your dependents.
5. What information is on the 1095-C?
The 1095-C notifies the IRS of the individuals that have fulfilled their responsibility of medical coverage. Section II of the form has a letter and numerical code, which tell the IRS:
- The months you worked at the County
- The months you were covered by or offered medical insurance through the County
6. Will my family members get a 1095-C?
If your dependents are covered under your County medical benefits, they will be included on your 1095-C. You will not receive separate forms for your covered dependents. If your spouse and/or dependents are working, they will likely get a 1095-C from their employer, if they are considered benefit eligible or full-time. You can expect to get a 1095-C from a previous employer if you were employed before working at the County.
7. How will I get my 1095-C?
Electronic copies or paper copies are available. The IRS requires you “opt-in” to receive an electronic copy, and if you don’t opt-in, you will automatically receive a paper copy from your Payroll Coordinator.
You can opt-in now by clicking here
8. Which is best for me, the electronic copy or the paper copy?
Everyone has different needs, and you can print your electronic copy any time. If you don’t have access to a computer and printer, your payroll coordinator can help you print your form.
Paper copies have their benefits too. If you elect the paper copy option, you will receive one copy of the 1095-C through your Payroll Coordinator before March 2, 2017. Former employees, including retirees, will receive the 1095-C via postal mail.
9. Do I need the Form 1095-C in order to file my tax return?
No, you don’t need to attach the 1095-C to your tax return. The information is meant to help you complete line 61 of your 1040. More information on how to use this information is located at www.irs.gov/form1040
10. What if the information is incorrect?
You are encouraged to review the information listed on your 1095-C for accuracy, and contact your Payroll Coordinator or the Benefits Team if SSN’s or DOB’s are incorrect. Things to review include:
- Your correct name, address, SSN and DOB
- Correct names, SSN and DOB for your dependents
- Correct dates when you were covered under the County’s medical plan
11. Do I need to pay additional taxes based on the information provided in the Form 1095-C?
Form 1095-C tells the IRS who has met their individual mandate for coverage and information about which employers have offered employees Minimum Essential Coverage, or MEC. Please consult a tax professional to determine if additional tax applies.