Heads up: 1095-C, W-2 updates for year-end 2015

Once Forms W-2 are finished, employers can distribute them to employees electronically, assuming you get their consent. As for the electronic delivery of other year-end forms, such as the new Form 1095-C, the IRS recently gave a word of warning. 

Separate consent is needed, the IRS said during its December Payroll Industry Call.

Forms 1095-C are being required for the first time this year-end under the Affordable Care Act.

Both Forms W-2 and Forms 1095-C will be due Feb. 1, 2016.

Sending the forms out electronically has advantages for Payroll, including fewer requests for duplicate copies.

If you want to distribute electronic Forms W-2 and Forms 1095-C, you can contact employees initially through your intranet, email or mail.

According to IRS regs, the consent process itself should prove employees have the capability to access the forms electronically.

No matter what method you use, forms should remain available to employees until Oct. 15, 2016.

Working on reporting

Here are some other important updates you won’t want to miss as Finance works on year-end reporting:

1. The IRS made changes to the instructions for Form 1094-C and 1095-C. The following clarifications were made on Dec. 1, 2015:

• On page 12, the correct format for date of birth in Part IV, column(c) is “YYYY-MM-DD.”
• The formatting directions in the instructions relate to paper returns. For example, you’re told to enter a nine-digit EIN including a dash on Line 2 of Form 1094-C. However, if you’re an electronic filer, you should follow the formatting given in the XML Schemas and Business Rules.

2. The IRS has clarified that you should file Form W-3c with the most recent version of Form W-2c.

The IRS revised Form W-3c in November 2015. When the form was first posted, the IRS said it should be filed with the Form W-2c that was revised in November 2015.

But Form W-2c was actually last revised in August 2014.