IRS Form 1095-C, Box 16 reports the Safe Harbor Codes and other situations that explain why an employer may not be subject to a penalty under the Affordable Care Act (ACA) employer mandate for a particular employee. These codes provide additional context for the offer of coverage reported in Box 14 and help determine whether the employer satisfies its ACA obligations.

Box 16 Safe Harbor Codes

2A - Employee was not employed on any day of the month.
2B - Employee was not a full-time employee during the month, or the employee was a full-time employee for part of the month but coverage ended due to termination.
2C - Employee enrolled in the coverage offered.
2D - Employee is in a limited non-assessment period (e.g., waiting period, initial measurement period for new variable-hour employees).
2E - Multiemployer interim rule relief applies (coverage offered under a union plan satisfying ACA requirements).
2F - Employer used the Form W-2 safe harbor to determine affordability for the employee.
2G - Employer used the Federal Poverty Line safe harbor to determine affordability for the employee.
2H - Employer used the Rate of Pay safe harbor to determine affordability for the employee.
2I - Reserved for future use.