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What codes do I enter in lines 14 & 16 for an employee who was not employed by us for part of the year?

Views: 257 Created: 2017-06-21 10:08 Last Updated: 2017-06-21 10:08

SYMPTOM

What codes do I enter in lines 14 & 16 for an employee who was not employed by us for part of the year?

RESOLUTION

For an employee who was hired mid-year or terminated mid-year, code 1H will be used in line 14 for months in which the employee was not employed or for months that coverage was not offered every day of the month. An offer of coverage needs to be made every day of the month to be considered an offer for that month.

Line 16 codes will differ depending on the employee’s status for the month. If the employee was not employed at all for the month, code 2A can be used in line 16 for that month. If the employee was part-time, or the employee was full-time and his/her offer of coverage ended before the end of the month due to termination, code 2B would be used. 2D will be used of the employee was hired mid-year, but was not offered coverage for the month due to a waiting period.

Hired mid-year example:
John Doe was hired on April 8th and was offered coverage immediately. Since the coverage was not offered every day of April, code 1H will be used in line 14 for that month. Likewise, since John was not employed by the company until April, 1H would be used for January, February, and March.

Code 2A would be used for line 16 in months January, February, and March, as John was not employed at all for those months. Code 2B would be used for April, as the employee was not considered a full-time employee for that month.

Hired mid-year with waiting period example:
John Doe was hired on April 8th but was not offered coverage until June 1st due to a waiting period. Since the coverage was not offered until June, code 1H will be used in line 14 for April and May. Likewise, since John was not employed by the company until April, 1H would be used for January, February, and March.

Code 2A would be used for line 16 in months January, February, and March, as John was not employed at all for those months. Code 2D would be used for both April and May, as the employee was in a waiting period for these months.

Terminated mid-year example:
John Doe was terminated on September 29th and was offered coverage until that point. Since the coverage was not offered every day of September, code 1H will be used in line 14 for that month. Likewise, since John was not employed by the company after September, 1H would be used for months October, November, and December.

Code 2A would be used for line 16 in months October, November, and December, as John was not employed at all for those months. Code 2B would be used for September, as the employee’s offer of coverage ended before the end of the month due to termination.

APPLIES TO

  • Current version of Yearli