The deadline for furnishing form 1095-C is fast approaching. Completing lines 14 and 16 on the form is the most daunting task for employers. Reviewing coding on these forms is very important as the IRS has rescinded any good-faith compliance relief for erroneous completion of ACA forms.
Line 16 of the Form 1095-C is where the employer identifies an employee’s coverage. The potential codes for Line 16 are identified below.
- 2A- The employee was not employed.
- 2B- The Employee was not a full-time employee or the employee was a full-time employee for the month but the coverage/offer of coverage ended before the last day of the month because the employee terminated during the month.
- 2C- The employee enrolled in coverage.
- 2D- The employee was in a Limited Non-Assessment Period (waiting period).
- 2E- The ALE Member was eligible for multiemployer plan relief.
- 2F- The ALE Member used the Form W-2 safe harbor for affordability.
- 2G- The ALE Member used the federal poverty line safe harbor for affordability.
- 2H- The ALE Member used the rate of pay safe harbor for affordability.
If no indicator code applies, line 16 blank is left blank. The available codes are as follows:
Employers should review Line 16 of their forms for each employee before distribution.
