What do the “Series 1” and “Series 2” codes on Form 1095-C represent, and how should they be used?
The “Series 1” and “Series 2” codes on Form 1095-C are used to indicate specific details about the health coverage offered to employees and the employer’s compliance with the Affordable Care Act (ACA). These codes are reported in Part II of the form and are critical for determining compliance with the employer mandate and the […]
What constitutes a “reportable policy sale”?
A “reportable policy sale” refers to the transfer of ownership of a life insurance policy in exchange for valuable consideration (e.g., money or something else of value) where the purchaser has no substantial family, business, or financial interest in the insured individual. This sale is subject to specific reporting rules under the Tax Cuts and […]
When is Form 1099-HC due to recipients?
Form 1099-HC, a health care coverage statement required in Massachusetts, must be sent to recipients by January 31 following the end of the tax year. This form is provided by health insurers to individuals who were enrolled in minimum creditable coverage during the year. Recipients use Form 1099-HC to complete their Massachusetts state tax return, […]
What are “cash tips,” and are they included in Form 8027 reporting?
Cash tips are gratuities provided directly by customers to employees in cash form, including currency, coins, or equivalent payments (e.g., checks). For tax purposes, cash tips are treated as income and must be reported by employees if the total exceeds $20 per month. They are subject to income tax withholding, as well as Social Security […]
Are employers with international employees subject to ACA requirements?
Employers with international employees may be subject to Affordable Care Act (ACA) requirements if they are classified as Applicable Large Employers (ALEs). An ALE is defined as an employer that had an average of at least 50 full-time employees (or equivalent) during the previous calendar year. In determining ALE status, employers must count all employees […]
What’s the difference between Form W-2 and Form 1099-NEC?
The main difference between Form W-2 and Form 1099-NEC lies in who receives them and how they report income. Here’s a breakdown: Form W-2 (Wage and Tax Statement) Purpose: Reports wages paid to employees and the taxes withheld from their paychecks. Who Receives It: Employees (full-time, part-time, or temporary) of a business. Key Features: Reports […]
