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ACA Employer Reporting Changes Signed Into Law: IRS Guidance Expected After Reporting Deadline for 2024 Tax Year

In late December, we published a briefing on the expected signing of two federal laws that will impact ACA reporting for employers. Both bills were signed into law on December 23, 2024.

With the deadlines for 1094/1095 reporting and distribution fast approaching, many employers have asked about the Paperwork Burden Reduction Act. This law allows an employer to satisfy the distribution requirements for Forms 1095-B and 1095-C by providing a “clear, conspicuous and accessible notice” that the form available upon request if such form is then provided by January 31st or within 30 days of request (whichever is later). Previously, this was possible in some cases for the Form 1095-Bs, but not for the Form 1095-Cs.

We note that the Paperwork Burden Reduction Act was signed into law after most employers had already made their arrangements for 1094/1095 reporting for the 2024 tax year. The IRS is expected to issue guidance on satisfying the notice requirement later this year. In the absence of complete guidance, we see no reason for most employers to change their distribution plans for 2024. For employers that do wish to avail themselves of the new law, some employers are using the existing IRS guidance for distribution of the 1094-B and 1095-B forms. The instructions indicate the notice of availability of the Form 1095s should be posted on the employer’s website (or perhaps a benefits portal) with an email address, physical mailing address, and telephone number that can be used to request a copy.