What does line 14 ACA codes on Form 1095-C mean?
1.7k views |
Last modified 11/3/2023 2:57:50 AM EST
Form 1095-C is generally used by ALE members to report their employee’s health coverage information.
This helps the IRS determine whether or not the employer owes a payment under the employer's shared responsibility provisions under section 4980H.
To communicate with the IRS about the offered health coverage information in Form 1095-C, the IRS has created two sets of ACA codes in Line 14 and 16 for the employers.
Line 14 ACA codes on Form 1095C
The Line 14 ACA codes on IRS 1095-C Form specifies the type of coverage offered to the employee and their dependents.
The code also indicates whether or not the employees enrolled in your offer of coverage and how many months the coverage was offered to the employee.
Here’s what the line 14 ACA codes on Form 1095-C mean. It also includes the additional eight new codes (1L - 1S) related to the ICHRA plan.
| Line 14 ACA Codes | Description |
|---|---|
| 1A | The code communicates to the IRS that your full-time employees, spouse, and dependent(s) were enrolled in your Qualifying Offer plan. |
| 1B | This indicates that you have offered MEC that provides Minimum Value to the employee only and NOT offered to spouse or dependent(s). |
| 1C | This represents that you offered MEC providing MV to the employee and dependent(s) and (not spouse). |
| 1D | This indicates you offered MEC providing MV to the employee and spouse (s) and (not dependents). |
| 1E | Use this code to say that you offered MEC providing MV to employees and minimum essential coverage offered to dependent(s) and spouse. |
| 1F | This code is used to indicate that you offered MEC NOT providing MV to the employee; or employee, spouse, and dependents. |
| 1G | This indicates that you offered coverage to an individual who was not a full-time employee for any month of the calendar year but enrolled in your self-insured coverage for one or more months of the calendar year. Please NOTE: Code 1G applies either for the entire year or not at all. |
| 1H | Use this code to represent that you have NOT offered coverage to the individual ( or the more months in which the individual was not an employee). |
| 1J | This indicates that you offered MEC providing MV to the employee, and at least MEC conditionally offered to a spouse, but not offered to dependent(s). |
| 1K | This represents MEC providing MV offered to the employee; at least MEC offered to dependents and conditionally offered to the spouse. |
| 1L | This indicates Individual coverage health reimbursement arrangement (HRA) offered to employees-only with affordability was determined using the employee's primary residence location ZIP Code. |
| 1M | This indicates Individual coverage HRA offered to employee and dependent(s) (not spouse) with affordability was determined using the employee's primary residence location ZIP Code. |
| 1N | This represents Individual coverage HRA offered to the employee, spouse, and dependent(s) with affordability was determined using the employee's primary residence location ZIP Code. |
| 1O | This indicates Individual coverage HRA offered to employee-only using the employee's primary work location ZIP Code affordability safe harbor. |
| 1P | This represents Individual coverage HRA offered to employee and dependent(s) (not spouse) using the employee's primary work location ZIP Code. |
| 1Q | This indicates Individual coverage HRA offered to the employee, spouse, and dependent(s) using the employee's primary work location ZIP Code affordability safe harbor. |
| 1R | This represents Individual coverage HRA that is NOT affordable to employees; employee and spouse or dependent(s); or employee, spouse, and dependents. |
| 1S |
This indicates Individual coverage HRA offered to an individual who was not a full-time employee. |
Take this scenario; for example, a full-time employee was offered & enrolled in a minimum essential coverage that provided minimum value for all twelve months.
Code 1E will be used in Line 14 of ACA form 1095-C because MEC coverage providing MV was offered to the employee, spouse, and dependents. Alternatively, the “All 12 Months” box may be completed if the same offer applies to all 12 months.
If you are unsure about how to generate Line 14 ACA codes, reach out to our ACAwise support team directly at [email protected] or (704)-954-8420. We discuss your ACA reporting requirements and create a plan for generating your 1094 and 1095 forms with the required line 14 ACA codes and e-file 1095-C to the IRS and postal mail copies to respective employees before the deadline.