The IRS has released the 2016 Forms 1094-B, 1094-C and 1095 –A, 1095-B, 1095-C; as well as the finalized instructions for all of the forms. As mentioned previously in an alert in July when the draft forms became available; the Forms 1094-C and 1095-C remain largely unchanged from the 2015 versions. However, there are some notable changes.

 

The “Plan Start Month” box on Form 1095-C will continue to be optional on the 2016 form. The more significant changes on the Form 1095-C are that codes 1I and 2I are now labelled as “Reserved” and two additional codes have been added:

 

1J – Minimum essential coverage providing minimum value offered to you; minimum essential coverage conditionally offered to your spouse; and minimum essential coverage NOT offered to your dependent(s)

 

1K – Minimum essential coverage providing minimum value offered to you; minimum essential coverage conditionally offered to your spouse; and minimum essential coverage offered to your dependent(s)

 

The Form 1094-C has a minor change on Line 22 Certifications of Eligibility: box “B” is now labelled as “Reserved”, which was previously for the “Qualifying Offer Transition Relief”.

 

The Instructions for the Forms 1094-C and 1095-C have been amended to include guidance on the new codes and have removed reference to any transitional relief that was applicable to 2015 calendar year plans.

 

New 2016 Forms 1094-C and 1095-C can be found here: 2016 Form 1094-C, 2016 Form 1095-C  and 2016 Instructions for Forms 1094-C and 1095-C. All other forms and instructions can be accessed by searching for the specific document on the IRS Forms and Instructions webpage.

 

Thank you for choosing Paylocity as your Payroll Tax partner. Should you have any questions please contact your Paylocity Account Manager.

 

 

This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.