IRS Form 1095-C - CalSHRM

IRS Form 1095-C - CalSHRM

IRS Form 1095-C: Indicator Codes for Lines 14, 15, and 16 Form 1095-C, Part II, Line 14: Indicator Code Series 1 for “Offer of Coverage” 1A. Qualifyin...

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IRS Form 1095-C: Indicator Codes for Lines 14, 15, and 16 Form 1095-C, Part II, Line 14: Indicator Code Series 1 for “Offer of Coverage” 1A. Qualifying Offer: Minimum essential coverage providing minimum value offered to full-time employee with employee contribution for self-only coverage equal to or less than 9.5% mainland single federal poverty line and at least minimum essential coverage offered to spouse and dependent(s). 1B. Minimum essential coverage providing minimum value offered to employee only. 1C. Minimum essential coverage providing minimum value offered to employee and at least minimum essential coverage offered to dependent(s) (not spouse). 1D. Minimum essential coverage providing minimum value offered to employee and at least minimum essential coverage offered to spouse (not dependent(s)). 1E. Minimum essential coverage providing minimum value offered to employee and at least minimum essential coverage offered to dependent(s) and spouse. 1F. Minimum essential coverage NOT providing minimum value offered to employee, or employee and spouse or dependent(s), or employee, spouse and dependents. 1G. Offer of coverage to employee who was not a full-time employee for any month of the calendar year and who enrolled in self-insured coverage for one or more months of the calendar year. 1H. No offer of coverage (employee not offered any health coverage or employee offered coverage that is not minimum essential coverage). 1I. Qualifying Offer Transition Relief 2015: Employee (and spouse or dependents) received no offer of coverage, received an offer that is not a qualifying offer, or received a qualifying offer for less than 12 months.

Form 1095-C, Line 15: Employee Share of Lowest Cost Monthly Premium for Self-Only Minimum Value Coverage Complete line 15 only if code 1B, 1C, 1D, or 1E is entered on line 14 either in the “All 12 Months” box or in any of the monthly boxes.

Form 1095-C, Line 16: Indicator Code Series 2 for Applicable Section 4980H Safe Harbor Codes and Other Relief for Employers 2A. Employee not employed during the month. Enter code 2A if the employee was not employed on any day of the calendar month. Do not use code 2A for a month if the individual was an employee of the employer on any day of the calendar month. Do not use code 2A for the month during which an employee terminates employment with the employer. 2B. Employee not a full-time employee. Enter code 2B if the employee is not a full-time employee for the month and did not enroll in minimum essential coverage, if offered for the month. Enter code 2B also if the employee is a full-time employee for the month and whose offer of coverage (or coverage if the employee was enrolled) ended before the last day of the month solely because the employee terminated employment during the month (so that the offer of coverage or coverage would have continued if the employee had not terminated employment during the month). Also use this code for January 2015 if the employee was offered health coverage no later than the first day of the first payroll period that begins in January 2015 and the coverage offered was affordable for purposes of the employer shared responsibility provisions under Page 1 of 2

section 4980H and provided minimum value. 2C. Employee enrolled in coverage offered. Enter code 2C for any month in which the employee enrolled in health coverage offered by the employer for each day of the month, regardless of whether any other code in Code Series 2 might also apply (for example, the code for a section 4980H affordability safe harbor). 2D. Employee in a section 4980H(b) Limited Non-Assessment Period. Enter code 2D for any month during which an employee is in a Limited Non-Assessment Period for section 4980H(b). If an employee is in an initial measurement period, enter code 2D (employee in a section 4980H(b) Limited Non-Assessment Period) for the month, and not code 2B (employee not a full-time employee). For an employee in a section 4980H(b) Limited Non-Assessment Period for whom the employer is also eligible for the multiemployer interim rule relief for the month code 2E, enter code 2E (multiemployer interim rule relief) and not code 2D (employee in a Limited Non-Assessment Period). 2E. Multiemployer interim rule relief. Enter code 2E for any month for which the multiemployer interim guidance applies for that employee. This relief is described under Offer of Health Coverage in the Definitions section of these instructions. 2F. Section 4980H affordability Form W-2 safe harbor. Enter code 2F if the employer used the section 4980H Form W-2 safe harbor to determine affordability for purposes of section 4980H(b) for this employee for the year. If an employer uses this safe harbor for an employee, it must be used for all months of the calendar year for which the employee is offered health coverage. 2G. Section 4980H affordability federal poverty line safe harbor. Enter code 2G if the employer used the section 4980H federal poverty line safe harbor to determine affordability for purposes of section 4980H(b) for this employee for any month(s). 2H. Section 4980H affordability rate of pay safe harbor. Enter code 2H if the employer used the section 4980H rate of pay safe harbor to determine affordability for purposes of section 4980H(b) for this employee for any month(s). Note. Codes 2F through 2H: Although employers may use the section 4980H affordability safe harbors to determine affordability for purposes of the multiemployer interim guidance, an employer eligible for the relief provided in the multiemployer interim guidance for a month for an employee should enter code 2E (multiemployer interim rule relief), and not a code for the section 4980H affordability safe harbors (codes 2F, 2G, or 2H). 2I. Non-calendar year transition relief applies to this employee. Enter code 2I if non-calendar year transition relief for section 4980H(b) applies to this employee for the month. See the instructions later under Section 4980H Transition Relief for 2015 and 2015 Section 4980H(b) Transition Relief for Employers with Non-Calendar Year Plans (Form 1095-C, line 16, code 2I), for a description of this relief. © 2015 Marilyn A. Monahan. All rights reserved.

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IRS Forms 1094-C & 1095-C Compliance Training: Fact Scenarios

Scenario 1: •



• • • • •

Employer (Acme Consulting, Inc.) has 120 F/T employees working on average 30 or more hours per week o Employer has 20 P/T employees working 20 hours per week o Employer does not have any variable hour or seasonal employees Calendar year plan year (January 1 – December 31) o Assume Acme not eligible for §4980H transition relief o Assume Acme not relying on qualifying offer reporting method Fully insured health plan Coverage is offered to all full-time employees, spouses, and dependent children Coverage is MEC (minimum essential coverage) and MV (minimum value) Affordability is determined based on the federal poverty line (FPL) safe harbor method Assume that during 2015, no employees are terminated, and no new employees are hired

Scenario 2: • • • • •



At the beginning of 2015, Employer (Acme Consulting, Inc.) has 120 F/T employees working on average 30 or more hours per week Fully insured health plan Coverage is MEC (minimum essential coverage) and MV (minimum value) Affordability is determined based on the W-2 safe harbor method o Coverage is not affordable based on FPL safe harbor Assume that during 2015, John Q. Participant o Was hired on September 1st o Because of a waiting period, his coverage took effect the first of the month after 60 days of employment (November 1) There were no terminations during 2015 and no other new hires

Scenario 3: • • •

Same facts as Scenario 2, except Acme has a self-funded health plan Employer is part of a control group with Beta Manufacturing, Inc. from January-April, then Beta is sold Assume John’s wife and daughter are also covered by the plan effective November 1

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1094-C

Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns

Form

Department of the Treasury Internal Revenue Service

Part I

120115

▶ Information

OMB No. 1545-2251

CORRECTED

2014

about Form 1094-C and its separate instructions is at www.irs.gov/f1094c.

Applicable Large Employer Member (ALE Member) 2 Employer identification number (EIN)

1 Name of ALE Member (Employer) 3 Street address (including room or suite no.) 4 City or town

5 State or province

6 Country and ZIP or foreign postal code

7 Name of person to contact

8 Contact telephone number

9 Name of Designated Government Entity (only if applicable)

10 Employer identification number (EIN)

11 Street address (including room or suite no.)

For Official Use Only

12 City or town

13 State or province

14 Country and ZIP or foreign postal code

15 Name of person to contact

17 Reserved .

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18 Total number of Forms 1095-C submitted with this transmittal

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19 Is this the authoritative transmittal for this ALE Member? If “Yes,” check the box and continue. If “No,” see instructions

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20 Total number of Forms 1095-C filed by and/or on behalf of ALE Member .

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21 Is ALE Member a member of an Aggregated ALE Group?

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Part II

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16 Contact telephone number

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ALE Member Information

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Yes

No

If “No,” do not complete Part IV. 22 Certifications of Eligibility (select all that apply): A. Qualifying Offer Method

B. Qualifying Offer Method Transition Relief

C. Section 4980H Transition Relief

D. 98% Offer Method

Under penalties of perjury, I declare that I have examined this return and accompanying documents, and to the best of my knowledge and belief, they are true, correct, and complete. ▲





Signature

For Privacy Act and Paperwork Reduction Act Notice, see separate instructions.

Title Cat. No. 61571A

Date Form 1094-C (2014)

120215 Page 2

Form 1094-C (2014)

Part III

ALE Member Information—Monthly (a) Minimum Essential Coverage Offer Indicator Yes

23

No

(b) Full-Time Employee Count for ALE Member

(c) Total Employee Count for ALE Member

(d) Aggregated Group Indicator

(e) Section 4980H Transition Relief Indicator

All 12 Months

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Apr

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June

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Sept

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Oct

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Nov

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Dec Form 1094-C (2014)

120315 Page 3

Form 1094-C (2014)

Part IV

Other ALE Members of Aggregated ALE Group

Enter the names and EINs of Other ALE Members of the Aggregated ALE Group (who were members at any time during the calendar year).

Name

EIN

Name

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EIN

Form 1094-C (2014)

1095-C

Form Department of the Treasury Internal Revenue Service

Part I

▶ Information

Applicable Large Employer Member (Employer)

1 Name of employee

2 Social security number (SSN)

3 Street address (including apartment no.) 5 State or province

4 City or town

Part II

OMB No. 1545-2251

CORRECTED

about Form 1095-C and its separate instructions is at www.irs.gov/f1095c.

Employee

600115

VOID

Employer-Provided Health Insurance Offer and Coverage

2014

7 Name of employer

8 Employer identification number (EIN)

9 Street address (including room or suite no.)

10 Contact telephone number

6 Country and ZIP or foreign postal code 11 City or town

12 State or province

13 Country and ZIP or foreign postal code

Employee Offer and Coverage All 12 Months

Jan

Feb

Mar

Apr

May

June

July

Aug

Sept

Oct

Nov

Dec

14 Offer of Coverage (enter required code) 15 Employee Share of Lowest Cost Monthly Premium, for Self-Only Minimum Value Coverage

$

$

$

$

$

$

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$

$

16 Applicable Section 4980H Safe Harbor (enter code, if applicable)

Part III

Covered Individuals If Employer provided self-insured coverage, check the box and enter the information for each covered individual. (a) Name of covered individual(s)

(b) SSN

(c) DOB (If SSN is not available)

(d) Covered all 12 months

(e) Months of Coverage

Jan

Feb

Mar

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22 For Privacy Act and Paperwork Reduction Act Notice, see separate instructions.

Cat. No. 60705M

Form 1095-C (2014)

600215 Page 2

Form 1095-C (2014)

Instructions for Recipient You are receiving this Form 1095-C because your employer is an Applicable Large Employer subject to the employer shared responsibility provision in the Affordable Care Act. This Form 1095-C includes information about the health insurance coverage offered to you by your employer. Form 1095-C, Part II, includes information about the coverage, if any, your employer offered to you and your spouse and dependent(s). If you purchased health insurance coverage through the Health Insurance Marketplace and wish to claim the premium tax credit, this information will assist you in determining whether you are eligible. For more information about the premium tax credit, see Pub. 974, Premium Tax Credit (PTC). You may receive multiple Forms 1095-C if you had multiple employers during the year that were Applicable Large Employers (for example, you left employment with one Applicable Large Employer and began a new position of employment with another Applicable Large Employer). In that situation, each Form 1095-C would have information only about the health insurance coverage offered to you by the employer identified on the form. If your employer is not an Applicable Large Employer it is not required to furnish you a Form 1095-C providing information about the health coverage it offered. In addition, if you, or any other individual who is offered health coverage because of their relationship to you (referred to here as family members), enrolled in your employer's health plan and that plan is a type of plan referred to as a "self-insured" plan, Form 1095-C, Part III provides information to assist you in completing your income tax return by showing you or those family members had qualifying health coverage (referred to as "minimum essential coverage") for some or all months during the year. If your employer provided you or a family member health coverage through an insured health plan or in another manner, the issuer of the insurance or the sponsor of the plan providing the coverage will furnish you information about the coverage separately on Form 1095-B, Health Coverage. Similarly, if you or a family member obtained minimum essential coverage from another source, such as a government-sponsored program, an individual market plan, or miscellaneous coverage designated by the Department of Health and Human Services, the provider of that coverage will furnish you information about that coverage on Form 1095-B. If you or a family member enrolled in a qualified health plan through a Health Insurance Marketplace, the Health Insurance Marketplace will report information about that coverage on Form 1095-A, Health Insurance Marketplace Statement.

TIP

Employers are required to furnish Form 1095-C only to the employee. As the recipient of this Form 1095-C, you should provide a copy to any family members covered under a self-insured employer-sponsored plan listed in Part III if they request it for their records.

Part I. Employee Lines 1–6. Part I, lines 1–6, reports information about you, the employee. Line 2. This is your social security number (SSN). For your protection, this form may show only the last four digits of your SSN. However, the issuer is required to report your complete SSN to the IRS. If you do not provide your SSN and the SSNs of all covered individuals to the plan administrator, the IRS may not be able to match the Form 1095-C to determine that you and the other covered individuals have complied with the individual shared responsibility provision. For covered individuals other than the employee listed in CAUTION Part I, a Taxpayer Identification Number (TIN) may be provided instead of an SSN.

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Part I. Applicable Large Employer Member (Employer) Lines 7–13. Part I, lines 7–13, reports information about your employer. Line 10. This line includes a telephone number for the person whom you may call if you have questions about the information reported on the form.

Part II. Employer Offer and Coverage, Lines 14–16 Line 14. The codes listed below for line 14 describe the coverage that your employer offered to you and your spouse and dependent(s), if any. This information relates to eligibility for coverage subsidized by the premium tax credit for you, your spouse, and dependent(s). For more information about the premium tax credit, see Pub. 974. 1A. Minimum essential coverage providing minimum value offered to you with an employee contribution for self-only coverage equal to or less than $1,108.65 (9.5% of the 48 contiguous states single federal poverty line) and minimum essential coverage offered to your spouse and dependent(s) (referred to here as a Qualifying Offer). This code may be used to report for specific months for which a Qualifying Offer was made, even if you did not receive a Qualifying Offer for all 12 months of the calendar year. 1B. Minimum essential coverage providing minimum value offered to you and minimum essential coverage NOT offered to your spouse or dependent(s). 1C. Minimum essential coverage providing minimum value offered to you and minimum essential coverage offered to your dependent(s) but NOT your spouse. 1D. Minimum essential coverage providing minimum value offered to you and minimum essential coverage offered to your spouse but NOT your dependent(s). 1E. Minimum essential coverage providing minimum value offered to you and minimum essential coverage offered to your dependent(s) and spouse. 1F. Minimum essential coverage NOT providing minimum value offered to you, or you and your spouse or dependent(s), or you, your spouse, and dependent(s). 1G. You were NOT a full-time employee for any month of the calendar year but were enrolled in self-insured employer-sponsored coverage for one or more months of the calendar year. This code will be entered in the All 12 Months box on line 14. 1H. No offer of coverage (you were NOT offered any health coverage or you were offered coverage that is NOT minimum essential coverage). 1I. Your employer claimed "Qualifying Offer Transition Relief" for 2015 and for at least one month of the year you (and your spouse or dependent(s)) did not receive a Qualifying Offer. Note that your employer has also provided a contact number at which you may request further information about the health coverage, if any, you were offered (see line 10). Line 15. This line reports the employee share of the lowest-cost monthly premium for self-only minimum essential coverage providing minimum value that your employer offered you. The amount reported on line 15 may not be the amount you paid for coverage if, for example, you chose to enroll in more expensive coverage such as family coverage. Line 15 will show an amount only if code 1B, 1C, 1D, or 1E is entered on line 14. If you were offered coverage but not required to contribute any amount towards the premium, this line will report a “0.00” for the amount. Line 16. This line provides the IRS information to administer the employer shared responsibility provisions. None of this information affects your eligibility for the premium tax credit. For more information about the employer shared responsibility provisions, see IRS.gov.

Part III. Covered Individuals, Lines 17–22 Part III reports the name, SSN (or TIN for covered individuals other than the employee listed in Part I), and coverage information about each individual (including any full-time employee and non-full-time employee, and any employee's family members) covered under the employer's health plan, if the plan is "self-insured." A date of birth will be entered in column (c) only if an SSN (or TIN for covered individuals other than the employee listed in Part I) is not entered in column (b). Column (d) will be checked if the individual was covered for at least one day in every month of the year. For individuals who were covered for some but not all months, information will be entered in column (e) indicating the months for which these individuals were covered. If there are more than 6 covered individuals, you will receive one or more additional Forms 1095-C that continue Part III.