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As the landscape of healthcare reporting continues to evolve, the recent updates from the IRS regarding the Affordable Care Act (ACA) are noteworthy for applicable large employers (ALEs). The Paperwork Burden Reduction Act has introduced significant changes that aim to alleviate the reporting burden on employers while ensuring compliance with federal regulations.
Understanding the new reporting requirements
Under the new guidelines, ALEs are no longer mandated to automatically distribute Form 1095-C to their employees. Instead, they are required to provide a clear and conspicuous notice informing employees of their right to request a copy of this form. This shift not only reduces the administrative workload for employers but also empowers employees to access their information as needed.
What constitutes a clear and conspicuous notice?
The IRS has clarified what qualifies as a compliant notice. Employers can fulfill this requirement by posting a notification on their company website, detailing how employees can request their Form 1095-C. This notice must be easily accessible and should include specific instructions on how to obtain the form. It is crucial for employers to ensure that the notice meets all stipulated conditions to avoid any compliance issues.
Timelines and electronic delivery options
Once an employee makes a request for Form 1095-C, the ALE is obligated to provide the form within 30 days. Employers have the option to deliver this form electronically, provided that the employee has given their consent for electronic communication. This flexibility can further streamline the process and reduce costs associated with printing and mailing.
Filing deadlines and state-level considerations
Despite the new relief measures, ALEs must still adhere to the filing deadlines for Forms 1094-C and 1095-C with the IRS. The deadline for electronic filing is set for March 31, 2025, while paper filings are due by February 28, 2025. Employers should also be mindful of any state-level health insurance coverage reporting requirements, as these may differ from federal regulations.
In summary, the recent IRS guidelines provide a much-needed reprieve for employers navigating the complexities of ACA reporting. By understanding and implementing these new requirements, ALEs can ensure compliance while minimizing their administrative burdens.