ACA Forms › Understanding Form 1095-C Codes: A Guide for Lines 14 and 16
It's common for employers to find deciphering and completing lines 14-16 of Form 1095-C codes challenging. Incorrectly reported codes on Form 1095-C can lead to significant penalties for employers.
We have compiled a user-friendly guide to assist employers in navigating Line 14 & 16 Codes, thereby avoiding such pitfalls.
Form 1095-C is an information return filed by employers with at least 50 full-time + full-time equivalent employees. These employers are known as 'Applicable Large Employers' or ALEs by the IRS. This form tells the IRS if the employer met ACA guidelines for the healthcare coverage they offer, and it requires that employees receive a recipient copy.
For more info on Tax Year 2023 Form 1095-C, click here
We also recommend checking out the IRS.gov ACA FAQ, which contains many common 1095-C questions in an easy-to-understand format.
In Line 14, employers are expected to use the applicable Series 1 codes (1A-1U) to describe the kind of health insurance offered to an employee, their spouse, and dependents.
If an employee qualifies for health benefits during any month of the year, then Line 14 should be populated for each month, even when an employee is not employed.
Code | Definition |
---|---|
1A |
Qualifying Offer |
1B |
Minimum Essential Coverage (MEC) providing Minimum Value (MV) offered to Employee (EE) only Spouses and dependents excluded from offer |
1C |
Spouse excluded from offer MEC providing MV offered to EE and at least MEC offered to dependents (not spouse) |
1D |
Dependents excluded from offer MEC providing MV offered to EE and at least MEC offered to spouse (not dependents) |
1E |
MEC providing MV offered to EE and at least MEC offered to dependents and spouse |
1F |
MEC not providing MV offered to EE; or EE, spouse, and/or dependents |
1G |
Self-insured coverage offered to a non-employee individual or a non-Full-Time Employee for any month of the year |
1H |
No offer of coverage |
1J |
Conditional Offer |
1K |
Conditional Offer |
For broken-down examples of ACA Code Series 1 on Form 1095-C, download our PDF Code Series 1 Guidance.
Code | Definition |
---|---|
1L |
ICHRA offered to Employee (EE) only Affordability is determined by using EE's primary residence location ZIP code |
1M |
ICHRA offered to EE and dependents (not spouse) Affordability is determined by using EE's primary residence location ZIP code |
1N |
ICHRA offered to EE, spouse, and dependents Affordability is determined by using EE's primary residence location ZIP code |
1O |
ICHRA offered to EEs only Using the EE's primary employment site ZIP code affordability safe harbor |
1P |
ICHRA offered to EE and dependents (not spouse) Using the EE's primary employment site ZIP code affordability safe harbor |
1Q |
ICHRA offered to EE, spouse, and dependents Using the EE's primary employment site ZIP code affordability safe harbor. |
1R |
ICHRA that is NOT affordable offered to EE; EE and spouse, and/or dependents |
1S |
ICHRA offered to an individual who was not an FTE |
1T |
ICHRA offered to EE and spouse (not dependents) Affordability is determined using EE's primary residence location ZIP code |
1U |
ICHRA offered to EE and spouse (not dependents) Using EE's primary employment site ZIP code affordability safe harbor |
For broken-down examples of ACA IRCHA Codes on Form 1095-C, download our PDF Code IRCHA Series Guidance.
On Line 15, employers are required to report the employee's monthly contribution amount.
The amount reported may not reflect the actual cost of the medical plan the employee enrolled in but instead should show the required contribution amount for the lowest-cost, self-only plan offered by the employee.
Line 15 should only be completed when certain codes were entered in line 14. If applicable, enter the Employee Required Contribution amount for the corresponding boxes in which codes 1B, 1C, 1D, 1E, 1J, 1K, 1L, 1M, 1N, 1O, 1P, 1Q, 1T, or 1U were entered on line 14.
The codes on Line 16 provide the IRS with further details regarding the employment and coverage status of the employee if the employer met certain affordability safe harbors and other information.
Code | Definition |
---|---|
2A |
The employer did not employ this person for any day during the calendar month |
2B |
The employee was not full-time for this month |
2C |
The employee enrolled in the offered coverage |
2D |
The employee was in an LNAP for the month |
2E |
The employer is eligible for the multi-employer interim relief rule |
2F |
The coverage is affordable based on the Form W-2 safe harbor |
2G |
The coverage is affordable based on the FPL safe harbor |
2H |
The coverage is affordable based on the Rate of Pay safe harbor |
For broken-down examples of ACA Code Series 2 on Form 1095-C, download our PDF Code Series 2 Guidance.
Line 17 was introduced by the IRS when ICHRA codes were added. Employers are required to enter the ZIP code for any employees offered an ICHRA plan.
The ZIP code entered is contingent on the code used. These codes specify whether the affordability of the coverage was based on the employee's primary residence or work location.
Use the ZIP code of the employee's residence if the following codes were used in line 14:
Use the ZIP code of the employee's primary site of employment if the following codes were used in line 14:
Click here to learn more about 1095-c instructions.
Looking for a downloadable copy of ACA Codes? Make sure to download our PDF copy of Form 1095-C Code Guidance.
Generally, ACA filing is handled by self-filing or by using an ACA Software provider:
Learn more about filing ACA Forms online.
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BoomTax and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors prior to engaging in any transaction.