Sarah Borders, CEBS November 20, 2023 6 min read

Most Employers Must File ACA Forms Electronically, Can No Longer File Paper Forms

In March 2023, new IRS rules required that all applicable large employers (ALEs) and most smaller employers file forms electronically and can no longer file paper forms.

According to the instructions, starting in Q1 2024 for the 2023 tax year, 1095/1094-C and B forms must be filed electronically for all employers who file 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 $310 per return (up from $290), not to exceed $3,783,000 (up from $3,532,500), for employers who don't file electronically but have more than 10 returns.

Thus, most employers must prepare now to file electronically and can no longer file via paper (the threshold was 250 but is now 10 total returns).

The deadlines for filing ACA reports with the IRS will remain the same in 2024:

  • Paper filings are due to the IRS by February 28, 2024
  • Electronic filings are due as of April 1, 2024 (March 31st is a Sunday)
  • 1095-C and B statements to individuals must be furnished by March 1, 2024, reflecting a permanent automatic extension 30 days after January 31

Filers can apply for an extension with the IRS by submitting Form 8809 prior to the filing due date.

The IRS issued final forms and instructions related to ACA reporting requirements for 2023 (2023 Instructions for Forms 1095/1094-C and 1095/1094-B), which reflect the new electronic filing thresholds.

If you have been filing paper forms in the past, now is the time to prepare for 2023 electronic filing, most likely through your payroll provider.  If your payroll vendor is unable to accommodate you, we can suggest possible third-party solutions. 

If you have questions regarding this change, please contact the Hausmann Group Employee Benefits team. 


Sarah Borders, CEBS

Principal, Benefits Compliance Solutions. Sarah has spent the last 15 years in the employee benefits industry, has numerous designations and serves on NAHU’s Employer Working Group Subcommittee and is an active board member of Austin AHU. She recently stepped down as Vice President of Benefits Compliance at one of the nation's largest brokerage firms to start her own compliance consulting practice. Her designations include an active license with the Texas Department of Insurance, CEBS (Certified Employee Benefits Specialist), Certified Health Care Reform Professional, HIPAA certification and Health Care Service Associate. She holds an MBA from Texas A&M Corpus Christi and a BA from University of Incarnate Word. Her consulting firm, Benefits Compliance Solutions, partners with employers to identify unknown risks and avoid hundreds of thousands of dollars in fines and lawsuits from failure to comply with their healthplan obligations.