Dec 16, 2024
Congress Passes Two Acts – Eases Some ACA Reporting Rules for Employers
Congress recently passed the Paperwork Reduction Act and the Employer Reporting Improvement Act and the President is expected to sign both Acts into law which will change a few of the current ACA Employer Mandate Reporting requirements.
Paperwork Reduction Act (HR 3797)
The Paperwork Reduction Act amends the ACA by no longer requiring employers and health insurance providers to send tax forms to the covered individuals under their health plan. The current regulation requires the 1095B/1095C tax form to be distributed to covered individuals showing proof of minimum essential coverage.
If the Act is signed by the President, the forms would only have to be provided when requested by the covered individual. If requested, the form must be provided by January 31 or 30 days after the date of the request, whichever is later. Employers and insurance providers must communicate the individual's right to request the form.
Employer Reporting Improvement Act (HR 3801)
The Employer Reporting Improvement Act changes the IRS regulations that will now allow for an individual’s date of birth to be substituted if the individual’s Tax Identification Number (SSN) is not available.
This Act also amends the ACA to allow employers and insurance providers to offer 1095B/1095C tax forms to individuals electronically under current IRS requirements.
And, most important to employers, the Act requires the IRS to give large employers (ALEs) at least 90 days to respond to 226-J letters. Currently, employers only have 30 to respond. The Act also establishes a six-year statute of limitations for collecting the penalty payments.
All other ACA reporting requirements will remain the same.
Stay tuned. When and if the President signs the two Acts, we will provide an update with effective dates.
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