Instructions For Forms 1094-C And 1095-C - 2017 (Page 14 of 17) in pdf

terms not included in this section, see the final regulations under

Dependent. A dependent is an employee’s child, including a

section 4980H, T.D. 9655, 2014-9 I.R.B. 541, at

child who has been legally adopted or legally placed for adoption

2014-9_IRB/ar05.html

and section 6056, T.D. 9661, 2014-13

with the employee, who has not reached age 26. A child reaches

I.R.B. 855, at 2014-13_IRB/ar09.html.

age 26 on the 26th anniversary of the date the child was born

and is treated as a dependent for the entire calendar month

Aggregated ALE Group. An Aggregated ALE Group refers to

during which he or she reaches age 26. For this purpose, a

a group of ALE Members treated as a single employer under

dependent does not include stepchildren, foster children, or a

section 414(b), 414(c), 414(m), or 414(o). An ALE Member is a

child that does not reside in the United States (or a country

member of an Aggregated ALE Group for a month if it is treated

contiguous to the United States) and who is not a United States

as a single employer with the other members of the group on any

citizen or national. For this purpose, a dependent does not

day of the calendar month. If an ALE is made up of only one

include a spouse.

person or entity, that one ALE Member is not a part of an

Aggregated ALE Group. Government entities and churches or

Designated Governmental Entity (DGE). A DGE is a person

conventions or associations of churches may apply a

or persons that are part of or related to the Governmental Unit

reasonable, good faith interpretation of the aggregation rules

that is the ALE Member and that is appropriately designated for

under section 414 in determining their status as an ALE or

purposes of these reporting requirements. For a Governmental

member of an Aggregated ALE Group. For more information on

Unit that has delegated some or all of its reporting

how the aggregation rules apply to government entity employers,

responsibilities to a DGE for some or all of its employees, one

see Notice 2015–87, Q&A 18, at

2015–52_IRB/

Authoritative Transmittal must still be filed for that Governmental

ar11.html.

Unit reporting aggregate employer-level data for all employees

of the Governmental Unit (including those for whom the

Applicable Large Employer (ALE). An ALE is, for a particular

Governmental Unit has delegated its reporting responsibilities).

calendar year, any single employer, or group of employers

For more information, see

Authoritative Transmittal for

treated as an Aggregated ALE Group, that employed an average

Employers Filing Multiple Forms

1094-C.

of at least 50 full-time employees (including full-time equivalent

employees) on business days during the preceding calendar

Eligible Employer-Sponsored Plan. An eligible

year. For purposes of determining an employer’s average

employer-sponsored plan refers to group health coverage for

number of employees, disregard an employee for any month in

employees under (1) a governmental plan, such as the Federal

which the employee has coverage under a plan described in

Employees Health Benefits Program (FEHB), (2) an insured plan

section 4980H(c)(2)(F) (generally, TRICARE or Veterans

or coverage offered in the small or large group market within a

Administration coverage). A new employer (that is, an employer

state, (3) a grandfathered health plan offered in a group market,

that was not in existence on any business day in the prior

or (4) a self-insured group health plan for employees.

calendar year) is an ALE for the current calendar year if it

Employee. An employee is an individual who is an employee

reasonably expects to employ, and actually does employ, an

under the common-law standard for determining

average of at least 50 full-time employees (including full-time

employer-employee relationships. An employee does not

equivalent employees) on business days during the current

include a sole proprietor, a partner in a partnership, an S

calendar year. For information on a special rule for certain

corporation shareholder who owns at least 2-percent of the S

employers with seasonal workers, see the final regulations under

corporation, a leased employee within the meaning of section

section 4980H and FAQs on IRS.gov.

414(n), or a worker that is a qualified real estate agent or direct

Applicable Large Employer Member (ALE Member). An

seller.

ALE Member is a single person or entity that is an ALE, or if

If an employee is an employee of more than one ALE

applicable, each person or entity that is a member of an

Member of the same Aggregated ALE Group during a calendar

Aggregated ALE Group. A person or entity that does not have

month, the employee is treated as an employee of the ALE

employees or only has employees with no hours of service (for

Member for whom the employee has the greatest number of

example, only employees whose entire service consists of work

hours of service for that calendar month; if the employee has an

outside of the United States that does not count as hours of

equal number of hours of service for two or more ALE Members

service under section 4980H) is not an ALE Member.

of the same Aggregated ALE Group for the calendar month,

Bona fide volunteer. A bona fide volunteer is an employee of

those ALE Members must treat one of the ALE Members as the

a government entity or tax-exempt organization whose only

employer of that employee for that calendar month. See

One

compensation from that entity or organization is (1)

Form 1095-C for Each Employee of Each Employer

for a

reimbursement for (or reasonable allowance for) reasonable

discussion of reporting in these circumstances. See Pub.15-A,

expenses incurred in the performance of services by volunteers,

Employer’s Supplemental Tax Guide, for more information on

or (2) reasonable benefits (including length of service awards),

determining who is an employee.

and nominal fees, customarily paid by similar entities in

Note. In certain circumstances, an employee may have a

connection with the performance of services by volunteers.

break in service (including a break in service due to a

termination of employment) during which the individual does not

COBRA continuation coverage. COBRA continuation

earn hours of service, but upon beginning to earn hours of

coverage is health coverage that is required to be offered under

service again the ALE Member must treat the individual as a

the Consolidated Omnibus Budget Reconciliation Act of 1986

continuing employee rather than a new hire for purposes of

(COBRA) in certain circumstances in which an employee or

certain rules under the regulations under section 4980H. See

other individual covered under a health plan loses eligibility for

Regulations sections 54.4980H-3(c)(4) and 54.4980H-3(d)(6).

coverage under that health plan (for example, because the

These rules do not impact whether the individual was an

employee terminates employment or has a reduction in hours).

employee during the break in service, so the individual should

For purposes of these instructions, COBRA continuation

only be treated as an employee during the break in service for

coverage also includes coverage required under any other

purposes of reporting if the individual remained an employee

federal or state law that provides continuation coverage

during that period (and had not terminated employment with the

comparable to that provided under COBRA. For additional

ALE Member). For example, an employee on unpaid leave

details, see section 4980B and Regulations sections 54.4980B-1

during the break in service would be treated as an employee for

through 54.4980B-10.

reporting purposes during the break in service, while a former

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Instructions for Forms 1094-C and 1095-C (2017)

Instructions For Forms 1094-C And 1095-C - 2017 Page 14

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