In a previous post today, we explained the incompatibility between using the 1A code on line 14 and the 2F or 2H code on line 16. Tonight’s update (version 76.57.322) includes an option to automatically make changes to eliminate the conflict between the two codes on all of the 1095-C forms where both are used. This eliminates the need for you to edit each form manually.
By simply running the 1095-C Report for full time employees, the program will detect any employees that use both codes, and if any are found, you will get a message similar to the following:
To decide what you should do, you must first know what affordability safe harbor you used.
(Sorry, but we can’t help you decide what method you used to determine affordability of your plan. The only recommendation we can provide is that if your plan does not require any contribution from the employee, the simplest thing seems to be using the federal poverty line safe harbor.)
If you are using the federal poverty line safe harbor, then you want to keep the 1A code. That means that you either need to report 2G on line 16 (which as we explained previously, is redundant) or blank out the line 16 code for months in which you are reporting a 1A code on line 14. The last two buttons on the right provide you with each of these options.
On the other hand, if you did not use the federal poverty line safe harbor, you will need to change the 1A code to a 1E code on line 14. The middle button provides you with that option.
You can also choose to do nothing. You can re-run the report again and the same message will appear.
Clicking on the “Help!” button will simply take you to the previous blog post about this issue.
For future years, when the 1A code is in use, we will like