HR Tasks and Form 1095-C: Demystifying Line 14

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As the deadline for furnishing Form 1095-C approaches, HR professionals are gearing up for the meticulous task of completing Lines 14 and 16—a critical aspect of Affordable Care Act (ACA) reporting. Accuracy this year is important because the IRS does not accept an argument of good-faith compliance to relieve penalties. This article delves into the intricacies of Line 14 which is the place on the form where employers identify an offer of health coverage.

Understanding Line 14:

Line 14 is the space to identify Offers of Health Coverage. To identify the correct Line 14 Code for each employee, employers must understand what coverage is offered to which employee for each month of the year. Accuracy in coding Line 14 is important, especially in the absence of good-faith compliance relief.

Deciphering the Codes:

• 1A: Qualifying Offer - Minimum essential coverage for the employee, with a required contribution equal to or less than 9.5% (adjusted) of the federal poverty line, and at least minimum essential coverage offered to spouse and dependents.
• 1B: Minimum essential coverage for the employee only.
• 1C: Minimum essential coverage for the employee and at least minimum essential coverage offered to dependents (not spouse).
• 1D: Minimum essential coverage for the employee and at least minimum essential coverage offered to spouse (not dependents). Do not use if spouse coverage was conditional; use code 1J.
• 1E: Minimum essential coverage for the employee and at least minimum essential coverage offered to dependents and spouse. Do not use if spouse coverage was conditional; use code 1K.
• 1F: Minimum essential coverage NOT providing minimum value offered to employee, employee and spouse or dependents.
• 1G: Offer of coverage for at least one month to an individual not an employee for any month or to an employee not full-time for any month who enrolled in self-insured coverage for one or more months.
• 1H: No offer of coverage.
• 1I: Reserved for future use.
• 1J: Minimum essential coverage for the employee and at least minimum essential coverage conditionally offered to spouse.
• 1K: Minimum essential coverage for the employee; at least minimum essential coverage offered to dependents; and at least minimum essential coverage conditionally offered to spouse.
• 1L to 1V: Various codes related to Individual Coverage Health Reimbursement Arrangements (HRAs) with different affordability considerations.

Key Tips for Accuracy:

Conduct a thorough review of Line 14 codes for each employee before distributing forms. While reviewing, ensure consistency in coding among employees and adherence to conditional offer nuances.

By properly coding Line 14, HR professionals contribute to ACA reporting, ensuring compliance and accurate insights into the health coverage landscape of their organization.

Employers that use BAS for ACA Data Collection and Reporting can rest easy because BAS codes Line 14 automatically. For information about BAS’ ACA Data Collection and Reporting Service, contact your account manager or solutions@basusa.com.