W-2 Changes & Filing Tips for Businesses for 2016

A guide to each new form related to the Affordable Care Act.

Affordable Care Act forms:Form 1095-B—Health CoverageInsurers and self-insured employers that provide health plans are required to report data on all covered individuals. They should do so on this form.

Form 1094-B—Transmittal of Health Coverage Information ReturnsForm 1094-B is the transmittal form that must be filed with Form 1095-B.

Form 1095-C—Employer-Provided Health Insurance Offer and CoverageEmployers with 50 or more full-time employees are required to report health insurance offer and coverage information to each full-time employee with Form 1095-C. A large employer with a self-insured plan will only be required to submit Form 1095-C, as the information on Form 1095-B can be included on Form 1095-C.

Form 1094-CTransmittal of Employer-Provided Health Insurance offer and Coverage Information Returns must be filed with Form 1095-C.

2015 W-2 Form Changes:Medicaid Waiver PaymentsCertain Medicaid waiver payments are excludable from income for federal income tax purposes. See Notice 2014-7 for additional information.

Third-party Sick Pay Recap ReportingFor wages paid in 2015, Form 8922, Third-Party Sick Pay Recap, will be used to report total third-party sick pay wages paid to employees . Form 8922 replaces the Third-Party Sick Pay Recap Form W-2 and W-3. Form 8922 is filed with the IRS rather than the SSA.

Virtual CurrencyThe fair market value of virtual currency (such as Bitcoin) paid as wages is subject to federal income tax withholding, FICA tax and Federal Unemployment Tax Act (FUTA) tax and must be reported on Form W-2.

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