What is the 98% offer method in ACA Form 1094-C?
129 views | Last modified 2/26/2024 2:28:32 AM EST | Added by TaxBandits Team

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

As per the Affordable Care Act (ACA), the 98% offer method is to certify the following criteria in Form 1094-C

  • 98% of its full-time employees were provided with healthcare coverage for all months they were employed.
  • Minimum Essential Coverage (MEC) provided for the employee, their spouse and children.
  • Coverage was affordable and met the Minimum Value (MV).
  • Covered employees were not in a limited non-assessment period.

If you’re an ALE member filing 1095-C and satisfy the above conditions, you need to select the “D. 98% offer method” checkbox in 1094-C Form, Line 22. By selecting this option, you are certifying that the above criteria are met.

If you are filing more than one 1094-Cs, choose any one 1094-C as an Authoritative Transmittal and check the box related to the 98% offer method. You should not select this option in all 1094-Cs. If you are filing only one 1094-C, you can select the relevant checkbox in it.

When you select the 98% offer method, you don’t have to complete Part III - column (b) of the 1094-C.

Keep in mind that you cannot submit 1094-C alone. It should be filed with the 1095-Cs. If you want to e-file your 1095-C, TaxBandits is here to help you. We support the e-filing of ACA forms, including 1095-C, 1094-C, 1095-B, and 1094-B

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