On April 5th, one of the part-time employees was promoted to a full-time position, with MEC coverage starting the first of the month following 30 days. After completing the waiting period, the employee chose to enroll in benefits on June 1st. How should the 1095-C form be coded?
169 views | Last modified 1/25/2023 4:13:07 AM EST | Added by TaxBandits Team

Applicable To
94X 1099 W-2 ACA W-4

The following codes should be used on part-II of Form 1095-C.

  • Line 14- Use Code 1H (No Offer of Coverage) for the months (Jan-May) indicating that the employee was not eligible for coverage. Code 1E is used during the months (June-Dec) that the employee was eligible for coverage.
  • Line 15- The employees’ monthly share of the lowest-cost self-only coverage offered only needs to be populated for the months the employee was eligible for coverage.
  • Line 16- Use Code 2B for the months (Jan-March) that the employee was part-time. Once the employee was moved to a full-time position in April, use Code 2D for the months (April-May) indicating the waiting period. Code 2C is used for the months (June-Dec) that the employee was enrolled in coverage.

If you do not know how to generate ACA codes on Part-II of the 1095-C form, contact our sister product, ACAwise, a cloud-based ACA reporting solution that is full-service and can ensure you remain compliant.

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