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August 18, 2017
2017-1345

Vermont health care contribution to be administered by Department of Taxes starting in 2018

Under recently enacted HB 516 (Act 73), effective January 1, 2018, the administration of the quarterly employer health care contribution will be moved from the Vermont Department of Labor to the Vermont Department of Taxes.

As a result, effective with the filing of the fourth quarter 2017 health care contribution return, which is due by January 31, 2018, employers will submit the quarterly health care contribution return to the Vermont Department of Taxes, rather than the Department of Labor.

According to the Labor Department's second quarter 2017 employer newsletter, the Departments of Labor and Taxes are working together to make this transition as seamless as possible. Additional information from the Department of Taxes will be issued closer to the transition date.

Details on the health care contribution

Vermont employers that have more than four full-time equivalent (FTE) employees (age 18 or older, working 30 or more hours) are required to offer health insurance coverage, the cost for which the employer pays a portion. Employers that do not offer health insurance must currently pay a health care contribution to the Vermont Department of Labor on a quarterly basis together with the state unemployment insurance on Form C-101, Employer's Quarterly Wage and Contribution Report.

For calendar year 2017, the health care contribution is $158.77 per uncovered FTE above the four FTE exemptions.

Employers use Form HC-1, Health Care Contribution Worksheet, to determine each quarter the number of FTEs employed and how much health care contribution is to be paid.

If the employer offers to pay a portion of the employee's cost of health insurance, employees are required to complete annual Form HC-2, Declaration of Coverage. These forms must be retained by the employer for a minimum of three years.

For more information, see the Department of Labor's website.

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Contact Information
For additional information concerning this Alert, please contact:
 
Workforce Advisory Services — Employment Tax Advisory
• Debera Salam(713) 750-1591
• Kristie Lowery(704) 331-1884
• Kenneth Hausser(732) 516-4558
• Debbie Spyker(720) 931-4321

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