IRS Form 1095-C is used by applicable large employers (ALEs) to report health insurance coverage offered to their employees under the Affordable Care Act (ACA). Lines 15 and 16 provide important information regarding the employee’s required contribution and enrollment status. Here are detailed instructions for filling out these lines:
Line 15: Employee Required Contribution
- Purpose: Line 15 reports the employee’s share of the lowest-cost monthly premium for self-only minimum essential coverage that meets the minimum value standard.
- How to Complete:
- Amount: Enter the monthly premium amount the employee must pay for the lowest-cost self-only coverage offered that meets the minimum essential coverage requirements.
- Currency: Report the amount as a whole dollar figure (e.g., enter 250 for $250).
- If No Offer: If the employee was not offered coverage for any month during the year, leave this line blank.
- Important Considerations:
- This figure must reflect the amount the employee would pay, not the total cost of the coverage.
- If there are multiple plans available, you should report the lowest-cost option.
- This amount is crucial for determining the affordability of the coverage provided.
Line 16: Applicable Indicator
- Purpose: Line 16 indicates the employee’s enrollment status and whether the employer met the ACA employer shared responsibility provisions.
- How to Complete:
- Select Code: You must enter a code that corresponds to the employee’s situation for each month of the year. The code will indicate whether the employee was enrolled in coverage and the applicable status.
- Common Codes:
- 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., new hires).
- 2E: Multi-employer plan (if applicable).
- Reporting:
- Enter the appropriate code for each month, based on the employee’s situation.
- You can list codes for all 12 months (January through December), indicating the employee’s status for each month.
