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Employers subject to ACA reporting must comply with reporting deadlines in early 2024 for the 2023 calendar year. They must furnish statements to individuals by March 1, 2024, and file returns by February 28, 2024, or April 1, 2024 (if filing electronically). Penalties may apply for non-compliance.
Employers subject to ACA reporting under Sections 6055 and 6056 include those with self-insured health plans and applicable large employers (ALEs) with fully insured or self-insured health plans. ALEs are employers with 50 or more full-time employees (including full-time equivalent employees) during the previous calendar year. ALEs with self-funded plans must comply with both reporting obligations, but the IRS allows them to use a single combined form to simplify the reporting process for Sections 6055 and 6056.
Section 6055 applies to providers of minimum essential coverage (MEC) who use Forms 1094-B and 1095-B to report coverage information. Section 6056 applies to ALEs with 50 or more full-time employees, who use Forms 1094-C and 1095-C to report health coverage information. Employers reporting under both sections, specifically, ALEs with self-insured plans, use a combined reporting method with Forms 1094-C and 1095-C.
Forms must be filed with the IRS annually, typically by February 28 (March 31 if filed electronically). Employers can request a 30-day extension by completing Form 8809. Additionally, statements must be furnished annually to each individual who is provided MEC and each of the ALE's full-time employees. The deadline for individual statements is usually January 31 of the following year, but there is an automatic 30-day extension starting in 2021. Statements must be furnished within 30 days after January 31.
There is a new electronic filing threshold for information returns required to be filed on or after January 1, 2024. The threshold has been decreased to 10 or more returns. The instructions for 2023 returns provide clarifications and reminders. The 10-or-more requirement applies to certain information returns, and a reporting entity may have an electronic filing obligation based on other kinds of information returns filed. The electronic filing requirement does not apply to those with a hardship waiver, but the IRS encourages electronic filing even for fewer than 10 returns. When filing forms electronically, follow the formatting set forth in the "XML Schemas" and "Business Rules" published on IRS.gov. For more information on electronic filing, see IRS Publications 5164 and 5165.
The individual mandate penalty has been reduced to zero since 2019. This means that individuals no longer need the information on Form 1095-B for tax purposes. Instead, the IRS has provided an alternative method for reporting entities to furnish statements to individuals under Section 6055.
Reporting entities must post a notice on their website stating that individuals can request a copy of their statement. The notice should include contact information. For 2023 statements, the notice must be posted by March 1, 2024, and retained until October 15, 2024. ALEs offering self-insured health plans should use Form 1095-C, Part III, to meet the reporting requirements under Section 6055. However, this alternative method of furnishing cannot be used for full-time employees enrolled in the self-insured plan.
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