Benefit News - February 2020

1095-C for Taxes

The IRS has developed a tax form to facilitate the reporting of health insurance information to employees — IRS Form 1095-C — as a requirement of the Healthcare Reform Law. If you were eligible for health insurance coverage through Colgate University in 2019, a form will be made available to you. The form is available whether you participated in the coverage or not.

You may retrieve your Form 1095-C via the online benefits portal. See instructions outlined below. 

Upon request to Relph Benefit Advisors, a paper copy of your Form 1095-C can also be mailed to your home.

Additional Information and Questions:
What is Form 1095-C and why do I need it?
When you file your federal income tax return, you will be required to answer a question about your 2019 health insurance coverage. If you did not have a minimum level of health coverage for all of 2019, your taxes could be affected. Most taxpayers simply need to check a box indicating they had qualifying health care coverage for the entire year.

The Form 1095-C identifies:
   -Part I - the employee and the employer
   -Part II - which months during the year you were eligible for coverage
   -The monthly cost for employee-only coverage in the lowest cost health plan offered by Colgate University, even if you elected an alternate plan and/or enrollment tier (like employee/spouse or family coverage).
   -Part III – listing the “Covered Individuals” will be completed with Spouse/Dependent information if they were covered under the health plan.

For more information, you may reference the IRS website including “Instructions for Form 1095-C,” at https://www.irs.gov/uac/About-Form-1095-C.

You may also contact Relph Benefit Advisors by calling 800-836-0026 ext. 510, Monday–Friday, 8 a.m.–4:30 p.m.

To obtain a copy of your 1095-C
1.       Visit the Colgate portal; log in using your network login and password. 
2.       Under HR, click on the Online Benefit System (this is where annual elections are made).
3.       Log in using your Colgate network login and password.
4.       In the upper right-hand corner of the Online Benefit System, click on your name.
5.       Select Personal Documents
6.       Select 1095C Employee Statement – 2019 
7.       You can print the file and/or save as a PDF
 

Changes to Form W-4 for 2020 

The IRS made fundamental changes to the income tax withholding Form W-4 for 2020.  The  new design reduces the form’s complexity and increases the transparency and accuracy of the withholding system. The 2020 Form W-4 is far easier and more accurate with respect to adjusting for tax credits, other income, and deductions. With the new version, employees will simply enter a full-year estimate in dollars. The payroll system will apply those amounts automatically to per-payroll wage and tax withholding calculations. Existing employees are not required to complete a 2020 Form W-4. Employees hired before 2020 can simply leave their 2019 or prior Form W-4 in effect indefinitely and withholding will continue to be based on the most recent Form W-4. 

Retirement Plan Members 

Additional Contribution Listed on December 2019 Retirement Statement 
As the value of Colgate’s retirement plans grow, participants with funds in the plans may reap the benefits of the economies of scale. This benefit can be found in different forms such as lower share class expense ratios and lower plan-related fees. When the fees collected exceed the fees required to manage the plan, there is a mechanism in place to return the excess fees to plan participants on a pro rata basis. This means for approximately 2,180 retirement plan participants, a contribution was posted to their account in December 2018. The retirement plans returned an approximate overall credit of close to $178,000 to participants based on an individual’s assets in the plan. Credits range from a penny to just under $700. Should you have questions regarding this revenue credit, please contact Human Resources at x7565.
 

Flexible Spending 

Flexible spending participants for 2019 should have submitted claims for services or purchases to Lifetime Benefit Solutions by December 31, 2019. In the event that you don’t use all of your FSA funds, you have a grace period of 2.5 months (up to March 15) following the 2019 plan year to incur expenses. All grace period claims for 2019 must be submitted to Lifetime Benefit Solutions by June 30, 2020.

Lifetime’s customer service hours and contact information are
Mon.–Thurs. 8 a.m.–5 p.m. and Friday 9 a.m.–5 p.m.
Toll Free: 1-800-327-7130
Email:  LBS.CustomerService@LifetimeBenefitSolutions.com
Website: www.LifetimeBenefitSolutions.com
Reminder:  Participants should keep copies of all flexible spending expenditures with your tax returns.