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Guide to Writing Hc 6

Filling out the HC-6 form is a critical step for small employers in Hawaii seeking premium supplementation under the Prepaid Health Care Act. This process not only ensures compliance with local laws but aids employers in managing health care costs for their employees. Prior to starting this procedure, gathering all necessary documents, such as payroll records, tax returns, W-2 forms, and health care billing statements, is essential. The following steps aim to simplify the completion process, making it accessible and manageable.

1. Begin by contacting the Disability Compensation Division at (808) 586-9199 to request a copy of Form HC-6, if you have not already downloaded it from the website.
2. Enter the employer's name, address, Department of Labor (DOL) account number, and Federal I.D. No./Social Security No. in the designated fields.
3. Fill in the health care contractor name and plan name under which your employees are covered.
4. Specify the total number of employees eligible for Prepaid Health Care (PHC) coverage and the total annual wages paid to these employees.
5. Under the section titled "To Calculate Premium Supplementation," input the annual premium cost for providing single PHC coverage to eligible employees as billed by your health care contractor.
6. Calculate and enter the employees' share of the premium cost, which is 1.5% of the employee’s wages (not exceeding 50% of the total premium cost).
7. Determine and fill in the employer's share of the premium cost by subtracting the employees' share of the premium cost from the total annual premium cost.
8. Input 1.5% of the total wages paid to covered, eligible employees.
9. Calculate the difference; if this number is not positive, you are not entitled to premium supplementation. If positive, proceed to the next field.
10. Fill in 5% of the employer’s adjusted income before taxes directly attributable to the business. Leave blank if not known.
11. Calculate the approximate amount of premium supplementation claimed. This is done by subtracting the 5% of the employer's adjusted income from the difference calculated in the previous steps.
12. Indicate the period for which premium supplementation is covered, including the start and end dates of the taxable year.
13. Confirm that you have attached all necessary documentation, including payroll records, tax returns, quarterly payroll tax reports, W-2 statements, health care billing statements, and any other relevant documents.
14. Review the form for accuracy and completeness. Ensure that the authorized representative signs and dates the form, providing their name, title, telephone number, and fax number if available.
15. Select the most convenient delivery method listed under the "Delivery Information" section and send the completed form along with all accompanying documents.

After submission, the Department of Labor and Industrial Relations will review the application for premium supplementation. The review process includes verifying the accuracy of the information provided and may involve an audit of company records. It is important to supply accurate and complete information to facilitate a smooth review process and increase the likelihood of approval for premium supplementation.

FAQs about the HC-6 Form

1. What is the purpose of Form HC-6?

   Form HC-6, also known as the Employer's Request for Premium Supplementation, is a document that small employers in Hawaii can submit to request financial assistance for health care premiums. This form is specifically designed for employers subject to Hawaii’s Prepaid Health Care (PHC) Act, who have less than eight employees entitled to PHC coverage, and whose share of health care premiums exceeds certain financial thresholds set forth by the PHC Act.

2. Who is eligible to file Form HC-6?

   To be eligible for premium supplementation under Form HC-6, an employer must meet all the following conditions: employ fewer than eight employees entitled to PHC coverage, have an approved health care plan under Section 393-7(a) of the PHC Act, and the employer's share of the premium cost for eligible employees (single coverage only) must exceed 1.5% of the total wages payable to such employees by an amount greater than 5% of the employer’s income before taxes directly attributable to the business.

3. What documents are needed to accompany Form HC-6?

   When submitting Form HC-6, employers need to include a variety of supporting documents: individual payroll records; a certified copy of the State of Hawaii income tax return for the business; a copy of the U.S. income tax return for the business; quarterly payroll tax reports (Forms UC-B6 and 941); Form W-2 wage and tax statements; health care contractor’s monthly medical billing statements; temporary disability insurance premium statements; and any other related documents pertaining to the request for PHC premium supplementation.

4. How is the premium supplementation calculated?

   Premium supplementation is calculated using a specific formula detailed in Form HC-6. This involves determining the total annual premium cost for providing single PHC coverage to eligible employees, calculating the employer's and employees' share of the premium cost, and then assessing whether the employer's share exceeds 1.5% of the total wages paid to eligible employees. If the employer's expense exceeds this threshold by an amount greater than 5% of the employer's adjusted income before taxes, the employer may be entitled to supplementation.

5. Where should Form HC-6 be submitted?

   Employers have the option to deliver Form HC-6 either through U.S. Mail to the Department of Labor and Industrial Relations, Disability Compensation Division, P.O. Box 3769, Honolulu, Hawaii 96812-3769, or in person at 830 Punchbowl Street, Princess Keelikolani Building, Room 209, Honolulu, Hawaii 96813. It’s critical to ensure that the form is signed and dated before submission.

6. What is the deadline for submitting Form HC-6?

   A claim for premium supplementation must be filed within two years after the end of the employer’s taxable year. This time limit is crucial for ensuring eligibility for the grant, and failure to comply may result in forfeiture of the right to supplementation.

7. Can Form HC-6 be submitted electronically?

   As per the information provided, the form and accompanying documents should either be mailed or delivered in person. For the most current submission methods, including any options for electronic submission, it is recommended to visit the Department of Labor and Industrial Relations' official website or contact them directly.

8. Is there assistance available for completing Form HC-6?

   Employers looking for help with Form HC-6 can contact the Disability Compensation Division at (808) 586-9199. This assistance can be invaluable, especially in understanding the eligibility criteria, determining the correct supplemental amount, and ensuring that all necessary documentation is accurately completed and submitted.

1. Not including all required documents with the Form HC-6 is a common mistake. The form specifically requires individual payroll records, a certified copy of the State of Hawaii income tax return for the business, the U.S. income tax return for the business, quarterly payroll tax reports (Forms UC-B6 and 941), Form W-2 wage and tax statement, health care contractor’s monthly medical billing statements, temporary disability insurance premium statements, and any other related documents. Failing to attach any of these documents can delay the process or result in denial of the premium supplementation claim.

2. Incorrect calculation of premium costs and wages. An accurate calculation of the total annual premium cost for providing single Prepaid Health Care (PHC) coverage to eligible employees, the employees’ share of the premium cost, and the employer's share of the premium cost is crucial. Errors in these calculations can lead to incorrect claims of entitlements or the amount of premium supplementation requested.

3. Overlooking the eligibility criteria outlined in Section 393-45 of the PHC Act. An employer must have less than eight employees entitled to PHC coverage, the employer's health care plan must be approved, the employer’s share of the premium cost must exceed certain thresholds, and the request must be filed within two years after the end of the employer’s taxable year. Missing any of these qualifying conditions could result in ineligibility for premium supplementation.

4. Forgetting to sign and date the form is a surprisingly frequent oversight. The form explicitly states that it should be signed and dated before submission. This simple but critical step is vital for the form to be processed. An unsigned or undated form may be considered incomplete and could be returned or not processed, delaying the supplementation request.

5. Choosing an incorrect delivery method or address for form submission can also pose problems. The Form HC-6 offers specific delivery options, including U.S. Mail and delivery in-person, along with the necessary addresses and contact information. Sending the form to the wrong address or choosing a method not specified can lead to delays in processing the request.

When dealing with the complexities of the HC-6 form, employers must navigate through various additional documents to ensure a thorough and compliant application process. Each document plays a critical part in affirming your eligibility and the precise benefit calculation under Hawaii's Prepaid Health Care Act. Understanding these documents will streamline the process, ensuring a smoother, more efficient submission.

• Individual Payroll Records: Detail employees' wages, essential for calculating the employer's share of premium costs and eligibility for premium supplementation.
• Copy of the State of Hawaii Income Tax Return for the Business: Verifies the business income, critical for determining the amount of premium supplementation the employer might be entitled to.
• Copy of the U.S. Income Tax Return for the Business: Further confirms the business’s financial situation, providing a comprehensive view of its tax obligations and income.
• Quarterly Payroll Tax Reports (Forms UC-B6 and 941): Demonstrates the quarterly wages paid to employees, which are necessary for accurate premium supplementation calculations.
• Form W-2, Wage and Tax Statement: Summarizes annual wages and taxes withheld for employees, offering a yearly snapshot crucial for premium cost assessments.
• Health Care Contractor’s Monthly Medical Billing Statements: Shows the cost of the health care plan, necessary for computing the employer's premium share and any eligible supplementation.
• Temporary Disability Insurance Premium Statements: Required for businesses offering this type of insurance, impacting the calculation of total health care costs.
• Proof of Health Care Plan Approval: Documents or correspondence confirming the business’s health plan meets the requirements set by Section 393-7(a) of the PHC Act.
• Business Registration Documents: Helps verify the legitimacy and operational status of the business applying for premium supplementation.
• Comprehensive Business Financial Statements: Offers a deeper insight into the financial health of the employer, supporting the income data provided in tax returns.

Gathering and preparing these documents can be detailed and time-consuming, but it’s essential for ensuring compliance with the Prepaid Health Care Act. Careful attention to these necessary forms and records will not only support an application for premium supplementation but also safeguard your business against possible discrepancies and audits. It's about providing peace of mind through diligent preparation, securing the well-being of your employees while maintaining the financial health of your business.

The HC-6 form, essential for small employers in Hawaii seeking premium supplementation under the state's Prepaid Health Care (PHC) Act, shares similarities with several other types of documentation used in different contexts. These documents primarily serve to assist in financial matters, claims for benefits, or compliance with specific regulatory requirements. Understanding their distinctions and commonalities can be beneficial for employers navigating the complexities of employee benefits and legal compliance.

Form UC-B6, Quarterly Wage, Contribution, and Employment and Training Assessment Report: Like the HC-6 form, Form UC-B6 is integral to businesses operating in Hawaii. It is used for reporting wages and contributions to the state’s unemployment insurance program. Both forms are crucial for compliance with state regulations and ensuring employee benefits are properly accounted for. Form UC-B6, however, focuses on unemployment insurance, a different aspect of employee welfare, but it similarly requires detailed employee wage information and adherence to reporting deadlines to maintain compliance and avoid penalties.

Form 941, Employer's Quarterly Federal Tax Return
: While distinctly a federal requirement, the purpose of Form 941 parallels the HC-6 form in its role in reporting and compliance. Form 941 is used by employers to report income taxes, social security tax, or Medicare tax withheld from employees' paychecks and to pay the employer's portion of social security or Medicare tax. The similarity here lies in the detail and precision required in reporting financial and employee data. Both forms are critical for businesses to correctly fulfill their tax-related responsibilities, with the distinction being the HC-6's focus on healthcare premium supplementation at the state level.