IRS Form 1095-C is used by applicable large employers (ALEs) to report information about health insurance coverage offered to their employees under the Affordable Care Act (ACA). Boxes 14, 15, and 16 are crucial for reporting specific details about the coverage provided. Here’s a breakdown of what each of these boxes represents:
Box 14: Offer of Coverage
- What to Report:
- Box 14 indicates whether the employer offered health coverage to the employee, the type of coverage offered, and the affordability of that coverage.
- Codes Used:
- Employers will enter a code in Box 14 to describe the offer made to the employee. Some common codes include:
- 1A: Minimum Essential Coverage (MEC) providing minimum value offered to the employee and dependents.
- 1E: MEC offered to the employee and at least one dependent, but not spouse.
- 1H: No offer of coverage.
- 1G: Minimum Essential Coverage offered to the employee, spouse, and dependents.
- Employers will enter a code in Box 14 to describe the offer made to the employee. Some common codes include:
Box 15: Employee Required Contribution
- What to Report:
- This box shows the amount the employee must pay for the lowest-cost monthly premium for self-only minimum essential coverage that meets the minimum value requirement.
- Reporting Requirements:
- The amount reported should reflect the premium the employee would need to pay for the coverage, and it must be reported as a monthly amount. If the coverage was not offered to the employee for any month, leave this box blank.
Box 16: Applicable Indicator
- What to Report:
- Box 16 provides information on whether the employee was enrolled in coverage for any month of the year and whether the employer met the employer shared responsibility provisions under the ACA.
- Codes Used:
- Common codes that might be reported in Box 16 include:
- 2A: Employee not employed during the month.
- 2B: Employee not eligible for coverage.
- 2C: Employee enrolled in coverage.
- 2D: Employee in a limited non-assessment period (e.g., a new hire).
- Common codes that might be reported in Box 16 include:
Summary of Reporting
- Form 1095-C serves as a way for employers to demonstrate compliance with ACA reporting requirements.
- Boxes 14, 15, and 16 provide critical information about the health insurance coverage offered, the cost to the employee, and the employee’s eligibility or enrollment status.
- Employers must ensure accurate reporting in these boxes to avoid potential penalties and ensure that employees have the necessary information for their tax filings.
Conclusion
When completing Form 1095-C, it’s essential to carefully report the information in Boxes 14, 15, and 16 to provide a clear understanding of the coverage offered and the employee’s contribution.
