IRS Form 1095-C is required for applicable large employers (ALEs) to report health insurance coverage offered to employees under the Affordable Care Act (ACA). Lines 15 and 16 are especially important because they provide details on employee contributions and enrollment status. Here’s how to correctly complete these sections.
Line 15: Employee Required Contribution
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Purpose: Line 15 reports the employee’s share of the lowest-cost monthly premium for self-only minimum essential coverage that meets the minimum value standard.
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How to Complete:
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Enter the monthly premium amount the employee must pay for the lowest-cost option.
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Report the figure as a whole dollar (e.g., enter 250 for $250).
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If the employee was not offered coverage for any month, leave Line 15 blank.
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Key Considerations:
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The amount must reflect only the employee’s cost, not the employer’s share.
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If multiple plans exist, report the lowest-cost option.
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This figure is critical for determining affordability under ACA requirements.
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Line 16: Applicable Indicator
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Purpose: Line 16 indicates the employee’s enrollment status and whether the employer met ACA shared responsibility provisions.
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How to Complete:
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Enter the appropriate code for each month of the year based on the employee’s situation.
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Common Codes:
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2A: Employee not employed during the month.
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2B: Employee not eligible for coverage.
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2C: Employee enrolled in coverage.
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2D: Employee in a limited non-assessment period (e.g., new hire).
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2E: Multi-employer plan coverage.
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Reporting:
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Codes must be entered monthly (January–December) to reflect employee status.
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If status remains the same for the year, you may enter a single code that applies to all 12 months.
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How 1099FIRE Can Help
Completing IRS Form 1095-C Line 15 and Line 16 correctly is essential to avoid IRS penalties. At 1099FIRE, we make ACA compliance easier by:
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Providing ACA software that automates coding and calculations.
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Reviewing employee coverage data to prevent costly reporting errors.
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Acting as your IRS-approved transmitter to securely e-file ACA forms.
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Offering expert support to ensure forms are accepted without rejection.
For assistance with ACA compliance and e-filing services, contact us at info@1099fire.com or call 480-706-6474.