The IRS issued final forms and instructions related to ACA reporting requirements for 2024 (2024 Instructions for Forms 1095/1094-C and 1095/1094-B).
Applies To:
- Applicable large employers (ALEs) with fully insured and self-funded health plans, including ICHRAs (1095/1094-C)
- Small employers with level-funded health plans, including ICHRAs (1095/1094-B)
Go Deeper:
According to the instructions, 1095/1094-C and B forms must be filed electronically for all employers who file in aggregate 10 or more of various types of information returns, including W-2s, 1099s, 1098s, and 1095-B or C.
In addition, the penalty for failure to file electronically is increased to $330 per return (up from $310), not to exceed $3,987,000 (up from $3,783,000), for employers who have more than 10 total returns. However, there is no annual maximum if there is an intentional disregard of the requirements to file the returns and furnish recipient statements.
The 1095-C instructions mention that the affordability safe harbor and qualifying offer method are applied using the percentage for 2024, which is 8.39%.
Here are deadlines for filing ACA forms with the IRS in 2025:
- Paper filings are due to the IRS by February 28, 2025 (note: most employers can no longer file paper forms).
- Electronic filings are due to the IRS as of March 31, 2025.
- 1095-C and B statements to individuals must be furnished by March 3, 2025, reflecting a permanent automatic extension 30 days after January 31.
Publications 5165 (guide for electronically filing ACA information returns for software developers and transmitters), 5258 (ACA AIR submission composition and reference guide), and 5308 (guide for automated enrollment for ACA providers) have also been revised. However, employers are encouraged to work with their payroll provider or other ACA filing platform for assistance with filing electronic returns.
Filers can apply for an extension with the IRS by submitting Form 8809 prior to the filing due date.
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