What Information should I report in Line 16 of Form 1095-C?
406 views |Last modified 6/9/2023 1:12:28 AM EST | Added by TaxBandits Team
Line 16 of Form 1095-C is used to report the information about the employees’ eligibility for health coverage and the coverage status for each month of the calendar year.
The following are the available codes in Code Series 2 that you (employer) can choose to enter in line 16 of Form 1095-C. If the same code applies for all 12 calendar months, you may enter it in the “All 12 Months” box. You can also leave the monthly boxes blank if none of the codes apply for a calendar month.
| Line 16 Codes | Line 16 Code Description |
|---|---|
| 2A |
Employee not employed during any day of the calendar month. Note: Do not use code 2A for the month during which an employee terminates employment with the ALE Member. |
| 2B | An employee is not a full-time employee for the month and did not enroll in minimum essential coverage if offered for the month. |
| 2C | Employee enrolled in the Minimum essential coverage offered during any day of the calendar month. |
| 2D | The employee is in a section 4980H(b) Limited Non-Assessment Period. The employee is waiting period and not yet eligible for coverage. |
| 2E | Multiemployer interim rule relief |
| 2F | Section 4980H affordability Form W-2 safe harbor: The employer offered the employee coverage that was considered affordable based on the employee’s W-2 wages, but the employee did not enroll. |
| 2G | Section 4980H affordability federal poverty safe harbor. The employer offered the employee coverage that was considered affordable based on the federal poverty line, but the employee did not enroll. |
| 2H | Section 4980H affordability rate of pay safe harbor. The employer offered the employee coverage that was considered affordable based on the rate of income, but the employee did not enroll. |
If you’re not familiar with generating ACA codes on Line 16 of Form 1095-C, contact our Sister Product ACAwise, a cloud-based ACA reporting solution that takes care of everything on your behalf and helps you stay ACA compliant.
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