What you report on Form 1095-C depends on the affordability test you used.

Form 1095-C includes a code for the safe harbor an employer relied on, so the percentage you test against flows into what you report.

Reporting is where an affordability decision becomes visible to the IRS. Send us your renewal and we will give you a second opinion in writing.

What to know

Three things to know about the reporting.

The codes

Line 16 uses separate codes for the W-2, rate-of-pay and poverty-line safe harbors. Check the current instructions for Forms 1094-C and 1095-C for the exact codes.

Consistency matters

The safe harbor you report should be the test you actually ran. Keep the calculation behind each code on file.

Where to start

See what Form 1095-C reports for the form itself.

Keep reading.

The guide

The 2027 ACA Affordability Percentage: Employer Guide

What the IRS changed for 2027 and what to check before open enrollment. Back to the guide.

Next step

Read what Form 1095-C reports.

Sources

Where these figures and rules come from.

Sources

Figures and rules

IRS Instructions for Forms 1094-C and 1095-C; IRS Rev. Proc. 2026-26 (2027 affordability percentage of 10.22%, up from 9.96% for 2026) and Rev. Proc. 2026-22 (2027 employer shared responsibility payment amounts). 26 CFR §54.4980H-5(e)(2). This page is general information, not legal or tax advice.

Let’s Get to Work

Send us your renewal.

Four documents — the renewal letter, the plan summary, the contribution split by tier and enrolled counts by tier. We’ll come back with a competitive read, where we see opportunity, and the five questions we’d put to your carrier.

Start the Review 248.370.8853

Where does your group fall?

2 to 50 employees

250 to 999 employees

Above 50 employees