ACA reporting is coming due in March! The 2024 forms and instructions have been out for months. However, new relief previously available to small employers now extends to large employers, allowing them to only provide 1095 forms to individuals upon request starting March 3 as long as they post proper notice to their public website by March 3. All forms must be electronically submitted to the IRS by March 31.
Who this applies to:
- Applicable large employers (ALEs) responsible for 1094-C/1095-C forms whether they sponsor any type of medical plan or not
- ALEs are typically those with 50+ full-time and equivalent employees, with employers in a controlled group or affiliated service group combining their employee counts
- Small employers who are not ALEs sponsoring level-funded, self-funded, or ICHRA plans, making them responsible for 1094-B/1095-B forms
Go Deeper:
1095 Statements to Individuals
1095-B or 1095-C statements must be provided to individuals 30 days after January 31, or March 3 this year. However, if the employer responsible for completing 1095 forms provides proper notice on their public website by March 3 and keeps it there through October 15, then the employer can provide the 1095 form to only those who request it. Guidance states all size employers can take advantage of this in an easy two-step approach.
First, the main public webpage must provide a prominent link to “Tax Information.” A public webpage should be a website former employees can access and would be reasonably expected to visit to find employer contact information.
Then the secondary public webpage that link takes people to must also be accessible to former employees and must include the following content:
- “IMPORTANT HEALTH COVERAGE TAX DOCUMENTS” in all caps
- How a “responsible individual” may request a copy of “Form 1095-B, Health Coverage,” or
- How a “full-time employee” may request a copy of “Form 1095-C, Employer-Provided Health Insurance Offer and Coverage”
- With email address, mailing address, and telephone number
Requests must be honored within 30 days. Individuals can give consent to electronic delivery, and that individual’s consent may be relied upon until revoked in writing.
Electronic Filing to IRS
As a reminder, starting last year, all 1094/1095 forms must be filed electronically for all employers who file 10 or more of various types of information returns combined (i.e., after they add up all the W-2, 1099, 1095, and a few others listed here). This essentially means every employer with an ACA reporting obligation must e-file their forms to the IRS by March 31. An extension can be requested by submitting Form 8809 no later than March 31.
In addition, the penalty for failing to file electronically or for failing to submit accurate or complete forms is increasing to $330 per return or statement (up from $310). This is reduced to $130 if corrected by August 1, or $60 if corrected within 30 days of the original due date. These fees apply separately related to statements due to individuals by March 3 vs. returns due to the IRS by March 31.
Keep in mind that several states (CA, MA, NJ, RI, and D.C.) have additional state filing obligations.
Employers should consider the preparations of such filings, including any state filings, and work with their payroll provider or ACA reporting vendor to complete any applicable filings electronically by the above due dates.
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