Reminder: March 31 Deadline for Filing 2016 Flexible Spending Account Claims

If you had a Health Care and/or Dependent Day Care Flexible Spending Account (FSA) for 2016, the deadline to submit 2016 FSA claims to TASC is Friday, March 31, 2017.  Health care and dependent care expenses incurred during the 2016 calendar year are eligible.  Claims for 2016 that are received by TASC after March 31, 2017 will not be processed. Note: This does not apply to Health Savings Accounts (HSA).

As a reminder, the IRS allows up to $500 Health Care FSA funds to be carried over to the following year.  After the March 31, 2017 deadline, any unused or unclaimed funds over $500 in your 2016 Health Care FSA will be forfeited.  If you did not sign up for a 2017 Health Care FSA during the Annual Benefits Enrollment period last fall, an account will be created for you if you have carryover.  You will not receive a new TASC debit card.  Note: There is no carryover provision for the Dependent Day Care FSA.

You may submit a claim using any of the following methods:

Important: The IRS requires you to include appropriate supporting documentation when submitting a claim.  Make sure that your documentation contains the required information before submitting.

Source: UW Service Center

Income Continuation Insurance Deferred Enrollment Elections Effective April 1, 2017

Employees who enrolled in Income Continuation Insurance (ICI) or added supplemental coverage during the ICI Deferred enrollment period, January – March 1, 2017, will have newly elected ICI coverage effective April 1, 2017.

For Faculty/Academic Staff/Limited Appointees (paid monthly), the premium update will be reflected on the May 1, 2017 paycheck. For University Staff (paid bi-weekly), the premium update will be reflected on the April 13, 2017 paycheck.

For more information about the ICI program, visit the ICI plan page. If you have questions, contact your human resources office.

Source: UW Service Center

2017 State Group Life Insurance Annual Update

Employees participating in the State Group Life insurance program will have their coverage level and premium updated effective April 1, 2017.

For Faculty/Academic Staff/Limited Appointees (paid monthly), the premium update will be reflected on the March 31, 2017 paycheck. For University Staff (paid bi-weekly), the premium update will be reflected on the March 30, 2017 paycheck.

State Group Life Insurance coverage level and premium are based on a participant's age as of April 1 each year, and their highest calendar year of Wisconsin Retirement System (WRS) earnings. The 2017 premiums are available at: https://www.wisconsin.edu/ohrwd/benefits/life/sgl/.

If you have questions, contact your human resources office.

Source: UW Service Center

Duplicate Tax Statements

Duplicate tax statements (Form W-2, 1095-C, 1042-S, etc.) are available on the MyUW portal.   Log into the MyUW portal for UW System institutions or for UW-Madison. Go to the Payroll Information module.  Open the module and choose the Tax Statements tab.  Statements for 2013 through 2016 are available.

The tax statements available on the portal do not include social security numbers. If you require a tax statement that displays your social security number, or you need a statement from a year prior to 2013, you may request a duplicate tax statement by completing a Duplicate Tax Statement Request.

The 2016 statements are processed at no charge. Processing fees for years prior to 2016 are:

  • Requests for duplicates from the previous 2 - 5 years are $5.00 per statement.
  • Requests for duplicates from the previous 6 or more years are $10.00 per statement.

Submit a check payable for the total amount due to: University of Wisconsin. Duplicates will not be processed or issued without payment. Mail your request and check to: UW Service Center, 660 W. Washington, Suite 201, Madison WI 53703.  Please allow 10 days for processing. 

Source: UW Service Center

Distribution of 1042-S Forms for Foreign Nationals

The 1042-S Forms (Foreign Person's U.S. Source Income Subject to Withholding) are available electronically via https://www.online-tax.net/ to employees who elected electronic distribution of their 1042-S Form through GLACIER (the online system used to handle data collection for UW foreign nationals). 1042-S Forms were mailed by February 24 via U.S mail to employees who elected hard copy distribution.

All 1042-S Forms (distributed electronically via Glacier or via U.S. mail) have been posted to the MyUW portal.   Log into the MyUW portal for UW System institutions or for UW-Madison. Go to the Payroll Information module.  Open the module and choose the Tax Statements tab. 

The deadline for filing state and federal income tax returns is Tuesday, April 18, 2017.

Source: UW Service Center

Summer Prepay Insurance Premium Deduction Schedule for 2017

Summer prepay insurance premiums will be deducted from March 31, May 1, and/or June 1 paychecks for the following employee groups:

  • Academic (9-month) employee who will be returning to UW employment in the fall of 2017
  • Academic (9-month) employee with a summer service/summer session appointment

Why are Summer Prepay Insurance Premiums Deducted in the Spring?

The additional summer prepay insurance premium deductions are taken to continue an employee’s insurance coverage through the summer (contract break) months. These additional premium deductions must be taken in the spring, along with regular monthly premium deductions, since insurance premiums cannot be deducted from summer service/summer session earnings. 

What if an Employee’s Employment Status Changes?

If an employee’s summer 2017 or fall 2017 employment status changes after they have already had summer prepay deductions, they may receive refunds for the summer prepay deductions. If an employee will be terminating employment, and will not return in the fall, they should contact their human resources office immediately for assistance in determining their employment termination date and the date their insurance coverage will end.

Employees who anticipate that they will experience any other status change; marriage, adoption, divorce, etc., should contact their human resources office immediately so they understand the impacts to their insurance benefits.

What if an Employee does not Have Summer Prepay Insurance Premiums Deducted?

If an employee does not have summer prepay deductions taken in the spring, and then has a summer session/summer service appointment, they will be billed directly for payment of the additional premiums due to provide them with insurance coverage during the summer months. 

2017 Summer Prepay Deduction Schedule

Important: This schedule outlines premium deductions for an employee scheduled to return to fall 2017 UW employment, or who has a summer appointment and is then terminating. Most employees will have deductions taken according to this schedule. Human resources offices can assist employees whose deduction schedule may vary from the schedule below based on appointment, summer employment, fall return date, or termination date.

Paychecks on Which Premiums will be Taken

Insurance

Premiums to be Taken

March 31, May 1, June 1

Health and other insurance deductions for programs in which you are enrolled.*

Regular premium deduction PLUS one summer premium deduction.

May 1

Income Continuation Insurance

Regular premium deduction PLUS two summer premium deductions.

June 1

Income Continuation Insurance

Regular premium deduction PLUS one summer premium deduction.

*Does not include Flexible Spending Account (FSA) or Health Savings Account (HSA) deductions. These deductions are calculated based on a 9-month schedule for academic (9-month) employees so no additional premiums are taken for these programs. 
*Does not include Tax-Sheltered Annuity (TSA) and Wisconsin Deferred Compensation (WDC) deductions. These deductions are based on an employee’s earnings. Since the employee will not have earnings during the summer months, there are no additional premiums taken for these programs.
*Opt-Out Incentive and Health Savings Account (HSA) employer contribution will continue to be processed during the summer months for these programs.

How Will Summer Prepay Appear on Earnings Statements?

Summer prepay will appear as a lump sum amount on earnings statements. All deductions taken pre-tax (most medical-related premiums and a portion of State Group Life Insurance premiums) will be added together under the name ‘Prebtx’ and all deductions taken post-tax (most life insurance premiums) will be added together under the name ‘Preatx.’ NOTE: ‘Prebtx’ stands for before tax or pre-tax and ‘Preatx’ stands for after tax or post-tax.

Regular benefit deductions for the month will continue to be listed under the plan name. These deductions are typically taken on a pre-tax basis. If an employee has one extra deduction for each plan, there will be a total listed under Prebtx or Preatx on each earnings statement impacted by the additional deductions. 

IMPORTANT: To verify accuracy, employees should review their earnings statements to ensure that their insurance deductions are accurate for their situation. If insurance premiums are not collected through the summer prepay deductions process, employees will be billed for premiums. In this case, employees must remit timely premium payments to continue their insurance coverage.

For questions, please contact your human resources office.

Source: UW Service Center

HR System Upgrade Gives New Look to Employee Self-Service Time and Absence Features

The recent upgrade of the UW Human Resources System (HRS) has introduced a new look that employees will experience when using self-service time and absence features to complete their timesheets and request absences.

Though employees will see a new look, the functionality of these self-service features is very similar.  To assist employees, a Time and Absence Help page is located in the Time and Absence portal module. This help page includes resources to familiarize employees with the new appearance of the Time and Absence self-service features.

For employees who have questions after viewing the help page resources, there is an HR Contacts tab on the page to direct employees to assistance at their institution.

Source: UW Service Center

1095-C Forms Available Online

IRS Tax Form 1095-C is available online in the MyUW portal.  Log into the portal for UW System institutions or for UW-Madison. The statement is located in the Payroll Information module under the Tax Statements tab. Paper copies of the 1095-C were mailed to employees via U.S. mail in February 2017 using the same address as the W-2 Form distribution.

 The UW System is providing Form 1095-C to all employees who were full-time, as defined by the Affordable Care Act (ACA), for all or some months of 2016. The information on this form will be used by the IRS to determine whether individuals and/or employers are subject to penalties under the ACA’s individual and employer mandates. Employees should retain Form 1095-C with their tax records.

 In addition to Form 1095-C, some employees will receive a Form 1095-B from their insurance carrier. Form 1095-B reflects health insurance coverage provided to an employee or their family member(s) during the previous calendar year. Form 1095-B also documents employee compliance with the ACA Individual Mandate. Employees should retain Form 1095-B with their tax records.

 For more information regarding Form 1095-C, Form 1095-B and the ACA, visit https://www.wisconsin.edu/ohrwd/aca/.  If you have questions regarding your Form 1095-C, contact the UW System’s third-party administrator, Businessolver at 1-844-215-5100. If you have any questions regarding Form 1095-B, contact your health insurance carrier that provided the form. 

Source: UW Service Center

GIB Moves to Self-insurance Model for State Group Health Insurance Pending Legislative Approval

On February 8, 2016, the Group Insurance Board (GIB) approved a motion to move to a self-insurance funding model for the State Group Health Insurance program effective January, 2018.   In addition, a move to a regional service model was approved.

According to the GIB, the move to self-insurance seeks to maintain benefits, contain costs and improve quality of the State Group Health Insurance program. The proposed change requires approval by the state legislature.  This approval has not yet occurred.

What is a Self-Insurance Funding Model?

Self-insurance is a way to finance employer health insurance programs. Currently in 2017, the state pays health insurance companies a fixed amount for employee health insurance coverage, and the health insurance companies pay all medical claims.  In the proposed model, the state pays medical claims directly to providers through third-party administrators. 

What is a Regional Service Model?

The GIB approved dividing the state into four regions, with one statewide health plan and additional health plans offering coverage in each region.  The GIB expects that regionalization will streamline program administration, control costs and simplify program information for participants.

To view a map of the proposed regions and which health plans will be offered in each region for 2018, visit the Department of Employee Trust Funds (EFT) Frequently Asked Questions about the proposed health insurance program changes.

How Will These Changes Affect an Employees’ Choice of Doctors?
The proposed change to a self-insurance funding model with a regional service model is not expected to impact employee provider choices (physicians, hospitals, clinics) as 98% of current providers will be available under the new program structure. 

It is expected that many of the health plans' provider networks will overlap. This means that many members can continue to see the providers they see today, even if they have to choose a different health plan.

Will Employees Pay More for Health Insurance in 2018 in a Self-insured Model?

The employee costs for premiums are unknown at this time.  Premiums will be available in the fall, and all employees will have time to review premiums, plan offerings and make any changes to their current coverage during the Annual Benefits Enrollment period.

As more details about the proposed self-insurance program become available, updates will be provided.  In the meantime, employees may find the following resources informative: 

Source: UW Service Center

Exclusion for Gender Reassignment Related Services Reinstated as of February 1, 2017

The Department of Employee Trust Funds (ETF) has announced that the exclusion for services related to gender reassignment for participants of the State of Wisconsin Group Health Insurance Program is reinstated as of February 1, 2017.  For more detailed information go to http://etf.wi.gov/news/ht_20170201.htm.

Source: UW Service Center

WRS News Online, January 2017

External link: http://etf.wi.gov/news/WRS_news_01232017/WRS_News_01232017.asp

W-2 (Wage and Tax Statements) Now Available Online; to be Mailed by January 31, 2017

(Additional Tax Forms to be Distributed in February and March)

 The 2016 W-2 Wage and Tax Statements are now available online in the MyUW portal for UW System institutions or for UW-Madison. Your statement is located under the Tax Statements tab in the Payroll Information app. Paper copies of the W-2 will be mailed via U.S. mail and postmarked by January 31, 2017.

A printed Form W-2 from the portal is a valid document for tax filing. However, if you are filing a paper tax statement, you must write your Social Security number or Individual Tax Payer Identification number in the 'a' field at the top of each Form W-2 section. In order to increase the security of sensitive information online, any U.S. Social Security or Tax Payer Identification number has been removed from the online statements.

Additional Tax Forms to be Distributed

Some employees will also receive additional tax forms from the University (Examples: 1095-C, 1042-S, Fellowship/Scholarship Letter, 1099-Misc Form).

  • The 1095-C Form will be mailed via U.S. mail to employees in early February and available on the portal by mid-February.  All UW employees who were full-time for some or all months of 2016 will have a 1095-C form to document that health insurance coverage was offered to them.  Employees will need the 1095-C Form as part of their documentation requirement when filing 2016 taxes.
  • The 1042-S Forms will be available in the Glacier Online Tax Compliance System for those who chose the option of electronic delivery; others will have them mailed to their home address.  The 1042-S forms will be posted on the portal sometime in March. 
  • The Fellowship/Scholarship Letter and 1099-Misc Forms will be mailed to your home address.

Filing Your Taxes

Please remember to use your W-2 Form, not your final 2016 Earnings Statement, to file your taxes. Some employees have had adjustments made to their 2016 taxable earnings since the last 2016 payroll was paid. These employees may have an additional earnings statement generated reflecting these adjustments. These adjustments will already be reflected on the W-2 Form that the employee receives.

The Internal Revenue Service (IRS) will begin accepting returns on January 23, 2017 for the 2016 tax filing season. To minimize your chance of a fraudulent return being processed using your Social Security number (SSN), or Individual Tax Payer Identification number (ITIN), you may want to consider filing a return as early as you are able and once you have received all necessary tax forms. More information is available on the IRS website.

Late February HR System Outage Will Affect Availability of Tax Forms on Portal

Please note that the UW’s Human Resource System (HRS) will have a multi-day outage towards the end of February in order to implement a technical upgrade of HRS.  During this outage all electronic statements on the portal, including the electronic copies of all tax forms, will be unavailable.  We anticipate that statement access will be restored when HRS comes back on-line on the morning of Monday, February 27th.  If you need an electronic copy of a statement during the outage, please contact your institution payroll administrator during normal business hours; they will be able to retrieve copies of your statements on your behalf.  See the ‘Help’ link in the My UW Payroll Information app for payroll administrator contact information for your institution.

Source: UW Service Center

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