How do I report waived or declined coverage?
The ACA regulations state an employer must offer minimum essential coverage to their eligible employees; however, it is not mandatory for the employee to accept the offered coverage.
If an employer offers minimum essential coverage, the employee may still decline it. When coverage is waived:
- Line 14 - Enter the applicable Offer of Coverage Code.
- Line 15 - If Line 14 uses any of the following codes, enter the lowest monthly cost for employee-only minimum essential coverage, even if the employee waived it:
- 1B, 1C, 1D, 1E, 1J, 1K, 1L, 1M, 1N, 1O, 1P, 1Q, 1T, or 1U
- Line 16 - Leave blank in most cases, since there is no code to show the employee was offered coverage but did not enroll.
- You may use codes 2F, 2G, or 2H if an affordability safe harbor applies.
For more information, please see the following: