Beginning with the fourth quarter payment for 2017, the Vermont Department of Taxes will collect the Health Care Fund Contribution Assessment from required employers. The first payment to the Department of Taxes is due on Jan. 25, 2018.
The Health Care Fund Contribution was established in 2006 for employers who do not offer insurance to all of their employees. For 10 years, the contribution was paid to the Vermont Department of Labor. Under Act 73 of 2017, the collection of this assessment was transferred to the Department of Taxes. The due dates are on the 25th of the month following the end of the quarter, instead of the last day of the month. This date change was implemented to sync up the filing date to the withholding due date to prevent businesses from needing to file an additional form. No changes were made for eligibility of who is required to pay this assessment.
The forms you will need to report health care contributions remain the same in number. All forms, as well as guidance, can be found at www.tax.vermont.gov. You or your employees will use three forms:
- Form HC-1, Health Care Fund Contributions Assessment
This form is a worksheet to help employers determine any assessment liability for the quarter. Do not submit this form to the Department of Taxes. Retain this form for your records for three years.
- Form HC-2, Declaration of Health Care Coverage
All employees must complete this form, whether covered or uncovered. The form must be completed every year. If the employee’s health coverage changes during the year, however, the employee must complete a new HC-2 at that time. Do not submit this form to the Department of Taxes. Retain this form for your records for three years.
- WHT-436, Quarterly Withholding Reconciliation
All businesses with withholding accounts must complete this form each quarter and enter the Health Care Contribution Assessment (calculation made on Form HC-1). Submit Form WHT-436 with payment of the assessment, if any, along with your employer withholding to the Vermont Department of Taxes on the 25th of the month following the end of a quarter. This form can be submitted online at www.myVTax.vermont.gov.
More information about Health Care Fund Contributions Assessment and eligibility requirements is available at www.tax.vermont.gov or by calling the Business Tax Section at 802-828-2551.