Five Questions Participants Will Ask About the Affordable Care Act 1095 IRS Forms

Employee questions about the 1095 IRS Forms:

What is this form I’m receiving?

A 1095 Form is similar to a W-2 form. The Health & Welfare Fund has sent one copy to the Internal Revenue Service (IRS), and one copy to you. A W-2 form reports your annual earnings. A 1095 form reports your health care coverage throughout the year.

Why are you sending it to me?

The 1095 forms will show whether you and your family members did or did not have health coverage during each month of the calendar year 2015. The Affordable Care Act mandates that every person must obtain health insurance.

What am I supposed to do with this form?

Keep it for your tax records. You do not need this form in order to file your taxes, but when you do file, you will be required to tell the IRS whether or not you had health insurance for each month of 2015. The Form 1095-B or 1095-C shows if you had health insurance through the Health & Welfare Fund. You do not need to postpone filing for taxes if you know what months you did or did not have health insurance, although we do ask you to save this form with your 2015 tax information, in case you need it in the future for proof of insurance.

What if I get more than one 1095 form?

Someone who had health insurance through more than one employer during the year may receive a 1095-B or 1095-C from each employer. Some employees may receive a Form 1095-A and/or 1095-B reporting specific health coverage details. Just keep these—you do not need to send them in with your 2015 taxes.

What if I did not get a Form 1095-B or a 1095-C or have other questions?

If you believe you should have received one but did not, or have other questions, contact the Health & Welfare Fund by phone (215) 568-0430.

What is a remittance report?

A remittance report is used to report weekly and monthly fringe benefits. Fringe benefits must be funded for all employees doing covered work in accordance with your Carpenters’ Collective Bargaining Agreement (CBA). All Agreements state that those benefits must be paid through the Fund’s online remittance system. These reports are completed on-line by an employer so they can accurately calculate, report, and pay for the Fringe Benefit Contributions.

When are the remittance reports due?

It is imperative that the Northeast Carpenters Funds receives their fringe benefit contributions in a prompt and timely fashion. Benefits are due the fifteenth (l5th) of the following month for the prior month.

What happens if the remittance report is received or filed on-line later than the 10 days or the 15th of the month?

Liquidated Damages will be assessed to that report. They are calculated at 10% of the total fringe benefit contribution. All employers are expected to pay their Liquidated Damages immediately after being notified.

I understand there are several areas within the Keystone Mountain Lakes Regional Council's jurisdiction. If my company has job sites in multiple areas, can I report all the hours on one remittance report?

Yes, provided those jobs are all at the same benefit rate. Please note that benefit rates can vary across geographic areas.

What rate code should I pay?

Rate codes vary depending on the type of work, and the location of that work. Floor Laying rates are different than Dock Building rates, which are different than Cabinet and Mill shop rates and Carpentry rates. Carpentry rates are different in the Lehigh Valley of Pennsylvania than in the City of Philadelphia. Millwright rates also vary and are different in the State of Delaware then in the Philadelphia Metro Area. Please consult your Union Business Agent or call the Collections Department of the Health and Welfare Fund.

What about apprentice rates? How can I determine an Apprentice's benefit rate?

For the most up to date apprentice information, please contact the Joint Apprentice office at (215) 824-2300.

If we performed no work during the month, are remittance reports still required?

YES. An inactive remittance report must be filed with the Fund Office. These reports can be filed on-line simply by submitting Zero hours worked for each member, and then submitting a payment of Zero dollars. Should your company anticipate that no work will be preformed in our jurisdiction for the foreseeable future, please contact the Fund office to be placed on the Inactive Contractors List.

Why is an inactive report required?

It is important for the Fund Office to know your activity status. If you do not file a remittance report, we do not know whether you are inactive or delinquent. Your company will be placed on our Delinquency List until the Fund Office receives a remittance report indicating you did not work in the jurisdiction.

What is a delinquency list?

This is a list of all Employers who have not submitted their remittance reports by their due date. This list is sent to the Board of Trustees, Business Agents, Fund Auditors, and to the Fund's Attorneys. Employers that find themselves on a delinquency list risk covered members being withheld from the job site (effectively being shut down) or having a claim placed against their Surety Bond.

What is a Surety Bond?

All contractors that work in our jurisdiction are required to have a Surety Bond in place. This bond is an insurance policy to cover lost wages and fringes of our membership. If you are planning to work in the jurisdiction of the Keystone Mountain Lakes Regional Council, and do not have a bond, please be advised that no work can be preformed. Currently, most Collective Bargaining Agreements call for a $75,000 Surety Bond. Please call the fund office with any specific bond questions. Any contractors looking for a Bonding agency can be referred to:

Universal Service Agency
http://www.universalbonds.com
501 Office Center Drive, Suite 128
Ft. Washington, PA 19034-3208
215-646-2400 (phone)
800-646-2401 (phone)

What is a Fund payroll audit?

The Funds Auditors may contact you six months to a year after you sign your first CBA. The Auditors will conduct a review of your payroll records to verify accurate and timely reporting and payment of benefit contributions. Any discrepancies found by the Auditor will be billed to your company. When you signed your CBA, you agreed to cooperate with the Auditors and to provide the information requested. Audits are routinely scheduled with all of our signed contractors.

How often will I be audited?

Generally, companies are audited once every 2 to 3 years. However, audits can be scheduled at any time, and at the Fund's discretion.

Will I be charged for an audit?

There is a $250 Audit Fee. An additional appearance fee of $100.00 MAY be billed to contractors who fail to be present or prepared at the time of the scheduled audit. This fee encourages Employers to comply with appointment letters from the audit staff and to give proper notification in the event that an audit date is inconvenient.