Employer Guide & Glossary


There are two series of IRS CODES for ACA reporting & compliance.

They relate to LINES 14 & 16 of FORM 1095-C, the individual employee form that ALEs, as health plan sponsors, must complete and distribute to all eligible employees.

See here for the difference between FORM 1095-B & 1095-C.


SERIES 1 codes are used to populate LINE 14 of FORM 1095-C.
They code the employer’s Offer of Coverage to the individual employee.


  • Was an individual offered coverage?
  • What type of coverage were they offered?
  • Plus what months was the coverage offered or not offered?

FORM 1095-C requires a value for each month, which can be represented by checking
either the 'ALL 12 MONTHS' box or by entering a value for each individual month.


SERIES 2 codes are used to populate LINE 16 of Form 1095-C. They code:

  • Whether the individual was employed and, if so, whether they were full or part time.
  • Whether the employee was enrolled in coverage.
  • Whether the employer is eligible for transition relief as an employer with a noncalendar year plan or as a contributor to a union health plan.
  • Whether coverage was affordable and, if so, based on which SAFE HARBOR code.

Download here a REFERENCE SHEET of all IRS SERIES 1 & 2 CODES for TY23.

  • NOTE: LINE 15 of FORM 1095-C relates to offer AFFORDABILITY, recording where required the lowest-cost, self-only coverage offered the employee each month. Certain OFFER CODES require LINE 15 to remain blank.
  • E.g. for OFFER CODE 1A or 1G, LINE 15 should NOT be populated.
  • NOTE: REFERENCES TO AFFORDABILITY relate to employee-only coverage level.
  • NOTE: AN OFFER OF COVERAGE is one that provides coverage for every day of a calendar month. There is an exception for terminated employees who would have been covered for the entire month, if not for the termination.
  • NOTE: A CONDITIONAL OFFER OF COVERAGE to an employee’s spouse is an offer under which the employee and/or spouse must meet or not meet one or more criteria.
  • E.g. the employee’s spouse may enroll only if the spouse is not eligible for coverage in his/her own employer-sponsored plan.

If you have questions regarding IRS CODING or any other aspect of ACA reporting & compliance, please contact BENEFITSCAPE, the leading ACA specialist.

BENEFITSCAPE provides best-in-class ACA services & intelligent FLAG & FIX REGTECH DIAGNOSTICS to 1000s of employers of all sizes, in all sectors, and on all major HCMs.

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