Code Guidance – Form 1095-C Code Series 1 & 2

Another tax year, another filing season! With BoomTax, you don’t have to spend endless hours laboring over getting your filings prepared and submitted to the IRS. Whether you’re brand new to BoomTax or have been a long-time customer, we’re always happy to help with your tax filing needs. With this in mind, we have created this code guidance worksheet to help with Line 14 and Line 16.

We know that figuring out codes can be complicated, but we are always here to answer any questions you may have. Reach out today and we can help you get started!

Code Guidance Line 14 – Series 1

Form 1095-C – Line 14, Offer of Coverage

It is required to be filled out for every month of the year, even if the employee was not employed the entire year.

There are a variety of codes that can be input here. Below is a chart that shows the code (ie: 1A), the code description, and when to use each code.

 DescriptionWhen to use this code
1A• The employer made a Qualifying Offer.
• The employer offered Minimum Essential Coverage (MEC) with Minimum Value (MV) to the employee (EE).
• The offer is affordable, because it’s less than or equal to 9.5% of the single, mainland federal poverty line.
• The employer also offered MEC to the spouse and dependents.
• The employer offered coverage to employees, spouses, and children.
• The employer offered Minimum Essential Coverage providing Minimum Value.
• The coverage is affordable at the employee only level because it’s less than or equal to 9.5% of the single, mainland federal poverty line.
1B• The employer only offered coverage to employees.
• The coverage is Minimum Essential Coverage (MEC) and provides Minimum Value (MV).
• The employer excluded spouses and children from the offered plan.
1C• The employer offered coverage to employees (EEs) that is Minimum Essential Coverage (MEC) and Minimum Value.
• The employer also offered MEC to EEs children.
• Spouses are not offered coverage.
• The employer excluded spouses from the offered plan.
1D• The employer offered coverage to employees that is Minimum Essential Coverage (MEC) and Minimum Value.
• The employer also offered MEC to the spouses.
• Children are not offered coverage.
• The employer excluded children from the offered plan.
1E• The employer offered coverage to employees that is Minimum Essential Coverage (MEC) and Minimum Value.
• The employer also offered MEC to EEs spouses and children.
• The difference between 1E and 1A is that the offered coverage may not be affordable or it is affordable based on a different safe harbor (other than the federal poverty line).
1F• The employer offered Minimum Essential Coverage (MEC) to the employee, BUT the coverage does not provide Minimum Value (MV).
• The employer also offered MEC to the employee and spouse and/or dependents, BUT the coverage does not provide MV.
• The offered coverage does not provide Minimum Value (MV).
1G• The employer offered self-insured coverage to an employee who was not full time at any point in the year.• The employer offered self-insured coverage to an employee (EE) who was not full time at any point in the year.
• Non-full time EEs are eligible for your plan.
• The EE was enrolled in the plan for the month in which this code is entered.
1H• The employer made no offer of coverage.
• OR The employer made an offer that didn’t provide Minimum Essential Coverage for the employee.
• The employee (EE) was not yet hired.
• The EE was in a limited non-assessment period (LNAP)(e.g. waiting period or initial measurement period).
• The EE was otherwise ineligible for coverage.
• The offer of coverage was not Minimum Essential Coverage (MEC).
• The offer of coverage was not for an entire month.
• The EE terminated and the employer offered COBRA.
• The EE made no offer to the employee, but the employer is using qualifying offer transition relief.
1J• The employer offered coverage to employees that is Minimum Essential Coverage (MEC) and Minimum Value (MV).
• The employer also conditionally offered MEC to spouse, but not to dependents.
• The employer made an offer to cover an employee's spouse only if the spouse is not eligible for coverage under Medicare or a group health plan sponsored by another employer.
1K• The employer offered coverage to employees and their dependents that is Minimum Essential Coverage (MEC) and Minimum Value (MV).
• The employer also conditionally offered MEC to spouse.
• The employer made an offer to cover an employee’s spouse only if the spouse is not eligible for coverage under Medicare or a group health plan sponsored by another employer.

We know that figuring out codes can be complicated, but we are always here to answer any questions you may have. Reach out today and we can help you get started!

Line 16 – Series 2

Form 1095-C – Line 16, Section 4980H Safe Harbor and Other Relief

Here, an ALE Member enters the appropriate code, if any, that apply to the employee. Line 16 is not required for every month, but it is highly recommended, if any apply.

There are a variety of codes that can be input here, as well. Below is a chart that shows the code (ie: 2A), the code description, and when to use each code.

 DescriptionWhen to use this code
2A• The employer did not employ this person during the month.• The employee is not yet hired.
• The employee is no longer employed.
2B• The employee was not full-time for this month.• The employee is part time.
• The employee is a seasonal or variable hour employee.
• The employee is in a measurement period and his/her FT status is not yet established (See Code 2D).
• The employee was terminated and is not offered coverage for the entire month of termination.
2C• The employee enrolled in the coverage you offered.• The employee accepts and enrolls in the employer's offer of coverage.
• If there is an option between 2C and another code, use 2C.
2D• The employee was in a Limited Non-Assessment Period (LNAP) for the month.• The employee is in a waiting period under the Monthly or Look-Back measurement method.
• The employee is in an initial measurement period under the Look-Back method.
• The employee is in the first calendar month of employment and did not start on the first day of the month.
• It is the employer's first year as an applicable large employer (ALE).
• The employee has a change in status during his/her initial look-back measurement period.
• The employee is in a non-assessment period (e.g. waiting period or initial measurement period).
2E• The employer is eligible for the multi-employer interim relief rule.• Some portion of the employer's workforce is eligible for a multi-employer (union) plan.
• The employer made an ongoing contribution to the plan on behalf of union employees.
2F• The coverage the employer offered is affordable based on the Form W-2 safe harbor.• Coverage is affordable for this employee based on the W-2 safe harbor method.
• The employer used the W-2 safe harbor for every month that the employee is offered coverage.
2G• The coverage the employer offered is affordable based on the Federal Poverty Line safe harbor.• Coverage is affordable to this employee based on the federal poverty line safe harbor method.
2H• The coverage the employer offered is affordable based on the Rate of Pay safe harbor.• Coverage is affordable to this employee based on the rate of pay safe harbor method.

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BoomTax does not provide tax or legal advice and any information contained in this document should not be construed as such. Always consult with a tax or legal professional regarding your specific situation.

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