Wednesday, February 21, 2018

The Complete ACA Reporting Codes Cheat Sheet

One of the most important aspects of Form 1095-C is knowing how to indicate data about the coverage offered to employees. To do this your business will need to use Code Series 1 and Code Series 2 in lines 14 and 16 of Form 1095-C. The IRS will review the codes used and make sure you are compliant with your ACA employer requirements. Here is the complete ACA reporting codes cheat sheet.

The Complete ACA Reporting Codes Cheat Sheet

Code Series 1
(Line 14 of Form 1095-C)
Code Series 2
(Line 16 of Form 1095-C)
  • Whether Employees Were Offered Coverage
  • Type Of Coverage Offered
  • Months Coverage Offered
  • Full-time or Part-Time Employment 
  • Coverage Enrollment
  • Transition Relief Eligibility 
  • IRS Safe harbor: Whether Coverage was Affordable

ACA Form 1095-C: Line 14

What does the Code Mean?
When Should You Use the Code?
Qualifying offer made to the employees, their spouse, and dependent(s)
Qualifying offers must not exceed 9.5 % of the mainland single federal poverty line

Coverage is only offered to employees
Coverage meets minimum essential coverage and the minimum value.

You exclude spouses and dependent from plan.

Coverage offered to employees and their dependent(s)
Spouses are excluded from plan

Coverage offered to employees and their spouse
Dependents are excluded from plan

Coverage is offered to employees, their spouse, and dependent(s).
Plan meets MEC MV, but coverage may not be affordable

Coverage offer to employee or employee, spouse, and dependents
Coverage does not provide minimum value

Self-insured coverage offered to employees who worked part-time at any point in the year
Employer offers a self-insured plan

Non-full time employee eligible for plan

Employee enrolled in coverage plan

Coverage was not offered to the employee
Employee was not hired yet

Limited non-assessment period
Ineligible for coverage

Coverage did not meet minimum essential coverage

Employee terminated and offered COBRA

ACA Form 1095-C: Line 16

What does the Code Mean?
When Should You Use the Code?
Employee was not employed during the month
Employee was not yet hired

The employee is no longer employed

Employee was not working full-time during the month
Employee is part-time

Seasonal employee

The employee enrolled in the coverage offered
Employee accepts coverage offer

If you have an option between code 2C and another code, always use code 2C

Employee enrolled in Limited Non-assessment Period (LNAP) for the month
Waiting period monthly or Look-Back measurement method

The employee’s initial measurement period used the Look-Back method

Employer eligible for multiemployer interim relief rule
Portion of workforce eligible for multiemployer (Union) plan

Ongoing contribution on behalf of Union employees toward plan

Coverage offered affordable based on Form W-2 Safe Harbor
W-2 Safe Harbor used every month employee was offered coverage

Coverage offered affordable based on Federal Poverty Line Safe Harbor
Affordability is based on Federal Poverty Line Safe Harbor

Coverage offered affordable based on Rate of Pay Safe Harbor
Affordable based on Rate of Pay Safe Harbor

Line 16 does not require codes to be entered, however, if a code applies you must enter it to provide an explanation to the IRS. This will help employers to avoid any unfair penalties for an employee during a given month.

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ACA Reporting Deadlines 2018:

Recipient Deadline: Friday, March 2, 2018
Paper Filing Deadline: Wednesday, February 28, 2018
Electronic Filing Deadline: Monday, April 2, 2018