Q. When are W-2s and Form 1099s mailed?
A. W-2s and Form 1099s for 2012 were mailed from Lincoln on January 23, 2013 to the provider’s address as known to the Nebraska Department of Health and Human Services (NDHHS) on December 31, 2012.
Q. What is the minimum amount a provider must earn to receive a W-2 or 1099?
A. The provider must have grossed at least $600.00 in 2012 from NDHHS for services they provided.
Q. Since my last billing period in 2011 did not end on December 31, does the Form1099 or W-2 cover payments to me for payments made to my business in 2012, or for services my business actually provided in 2012?
A. The Form 1099 or W-2 you receive covers payments made to your business during Calendar Year 2012. They cover payments for the year paid, not the year worked. In some instances those payments may have covered services your business provided in late 2011.
Q. Will you mail me a listing of all payments made to me by NDHHS in 2011?
A. NDHHS does not send an itemized list of payments at year end.
If you had your payments deposited to your bank account, you may want to refer to your bank statements for this information.
If your payments were made to the ReliaCard®, check your monthly ReliaCard statements for this information.
Q. Does DHHS withhold income taxes from my provider payments?
A. NDHHS does not withhold income taxes. However, for certain provider payments, we withhold FICA (Social Security) taxes and Medicare taxes during the year.
Q. Did the FICA or Medicare tax rate change as of January 1, 2013?
A. The Medicare tax rate did not change. It remains at 1.45% for both employees and employers. However, the employee FICA tax rate did increase from 4.2% to 6.2% for payments NDHHS makes to providers for whom we are required to hold out these taxes.
Q. What is a FICA refund check?
A. By Federal regulation, NDHHS is required to withhold FICA (Social Security) taxes and Medicare taxes from certain provider payments throughout the year. If we withhold these taxes, it is noted on the Explanation of Payment (EOP) NDHHS issues each time the provider is paid.
If the amount we paid these providers is more than $1800.00 per client served in the client’s home, then at year end, NDHHS matches the FICA taxes and Medicare taxes withheld during the year at the employer rate, and sends those funds to the federal government on behalf of the provider. NDHHS also issues the provider a W-2 tax form for each client that NDHHS did this for.
If however, the Department paid the provider less than $1800.00 per client they served, the FICA and Medicare taxes withheld during the year are returned to the provider and a check is issued early in January of 2013. That check is referred to as the “FICA check”.
Q. When are FICA refund checks issued?
A. FICA refund checks for 2012 are being issued during the week of January 7, 2013 to the address of the provider in NFOCUS as of December 31, 2012.