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What codes do I use for an employee who waived coverage?

Views: 5952 Created: 2017-06-21 09:55 Last Updated: 2017-06-21 09:56

SYMPTOM

What codes do I use for an employee who waived coverage?

RESOLUTION

When completing a 1095-C form, line 14 (Offer of Coverage) will indicate what type of coverage was offered to the employee, regardless of whether or not the employee enrolled. If an employee waives coverage that was offered to him/her, line 14 will indicate what coverage was offered to the employee.

If an employee waives coverage, and the code in line 14 is 1B, 1C, 1D, or 1E, line 15 will require a dollar amount. The amount entered in line 15 will be the amount it would have cost the employee to enroll his/herself for the month, had the employee enrolled in coverage.

Line 16 can be left blank if an employee waives coverage, or code 2F, 2G, or 2H can be used if applicable.

  • Use code 2F if the employee waived coverage, but the offer that was made was considered affordable based on the employee’s W-2 wages for the year.
  • Use code 2G if the employee waived coverage, but the offer that was made was considered affordable according to the federal poverty line.
  • Use code 2H if the employee waived coverage, but the offer that was made was considered affordable according to the employee’s rate of pay.

For more information on determining affordability based on W-2 wages, the federal poverty line, or the employee’s rate of pay, please see the IRS form instructions.

APPLIES TO

  • Current version of Yearli