Question:
Assuming your client is an Applicable Large Employer or ALE, what should the ALE use to calculate the 2016 Employee Required Contribution amounts for all FT employees on IRS Forms 1095-C? Remember, an ALE must produce an IRS form 1095-C for any non-seasonal FT employee who averaged at least 130 hours for at least one full month in 2016.
a) The total amount withheld from each employee’s paycheck for health insurance
b) The employee-only amount withheld from each employee’s paycheck for health coverage
c) The employee-only cost of the lowest cost plan (providing minimum value) offered to each employee
Answer:
c) The employee-only cost of the lowest cost plan (providing minimum value) offered to each employee.
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