Many orga­ni­za­tions pro­vide employ­ees the oppor­tu­ni­ty to waive their right to the offered med­ical cov­er­age and receive tax­able reim­burse­ment in return. But how does that get report­ed on the new­ly required 1095‑C form? IRS Notice 2015–87 has now stat­ed that all such arrange­ments in place pri­or to Decem­ber 17, 2015 need not do any report­ing of this option. The notice does pro­vide that such pay­ments will be added to the employee’s cost of cov­er­age for pur­pos­es of deter­min­ing the employee’s eli­gi­bil­i­ty for a sub­sidy on the Exchange and whether the employ­ee might be exempt from a penal­ty under the indi­vid­ual man­date. The cal­cu­la­tion for afford­abil­i­ty will, how­ev­er, be the amount the employ­ee receives for the opt-out plus the amount the employ­ee would have had to pay in the absence of the opt-out provision.

All this is true…of course…until the final reg­u­la­tions are issued, so…