Hi Carlos,
We applied the note and now the employees that are hired during the year but not on the first day of the month are no longer working. One issue is the employee gets 2B in line 16 for the month of hire. Per our lawyers, the code should be 2D, for the calendar month of hire. Our employees are eligible for benefits immediately upon hire. New hires not hired on the first day of the month are considered to be in a limited non-assessment period even if there is no waiting period for benefits so 2D applies.
From the 1095-C instructions.
2D.Employee in a section 4980H(b) Limited Non-Assessment Period. Enter code 2D for any month during which an employee is in a Limited Non-Assessment Period for section 4980H(b).
Limited Non-Assessment Period. A Limited Non-Assessment Period generally refers to a period during which an ALE Member will not be subject to an assessable payment under section 4980H(a), and in certain cases section 4980H(b), for a full-time employee, regardless of whether that employee is offered health coverage during that period.
First Calendar Month of Employment. If the employee’s first day of employment is a day other than the first day of the calendar month, then the employee’s first calendar month of employment is a Limited Non-Assessment Period.
In another case the line 16 for the month of hire is blank.
We are going to go forward with the note as it fixes some scenaros where a 1095 form was not being generated.
Thanks,
Marty