On December 23, 2024, President Biden signed into law the Paperwork Burden Reduction Act (PBRA) and the Employer Reporting Improvement Act (ERIA), intended to simplify employer\u2019s Affordable Care Act reporting requirements. The laws allow (i) flexibility for employers to furnish 1095-B and 1095-C tax forms to employees electronically and only upon request, (ii) the use of employees\u2019 birthdates instead of taxpayer identification numbers (TINs), and (iii) employers more time to respond to penalty assessments in IRS Letter 226-J.<\/p>\n\n\n\n
The Paperwork Burden Reduction Act<\/u><\/strong><\/p>\n\n\n\n The PBRA amends the Internal Revenue Code (the \u201cCode\u201d) and reduces unnecessary paperwork related to health insurance coverage reporting for employers and employees. Under the PBRA, employers and health insurance providers are no longer required to send a copy of the 1095-B and 1095-C tax forms to covered individuals showing proof of minimum essential coverage unless a form is requested. Accordingly, forms which would otherwise be required to be sent out this month, January 2025<\/em><\/strong>, will now only be required to be sent upon request.<\/p>\n\n\n\n Previously, employers that provided minimum essential coverage were required to report this information to the IRS and provide each covered individual with a 1095-B or 1095-C tax form by January 31 of each year. Effective for tax forms starting with the 2024 calendar year, employers are no longer required to send the 1095-B and 1095-C tax forms to covered individuals unless a form is requested. However, note that employers must inform covered individuals of their right to request a form. The PBRA requires the employer or health insurer to \u201cprovide clear, conspicuous, and accessible notice (at such time and in such manner as the Secretary may provide)\u201d that any covered individual may request a copy of such statement. If a 1095-C tax form is requested, it must be furnished to the individual by January 31 or 30 days after the date of the request, whichever is later.<\/p>\n\n\n\n The Employer Reporting Improvement Act<\/u><\/strong><\/p>\n\n\n\n As mentioned above, previously employers were required to provide each covered individual with a 1095-B or 1095-C tax form by January 31 of each year; employers had to report required information using the covered individual\u2019s TIN; and if an applicable large employer (i.e., 50 or more full-time employees) received a proposed assessment from the IRS (i.e., a Letter 226-J), the employer only had 30 days to respond. <\/p>\n\n\n\n The ERIA, intended to streamline employer reporting requirements and reduce administrative burdens of ACA compliance, now provides TIN reporting flexibility, allows electronic delivery, and extends applicable large employers response times around penalty assessments.<\/p>\n\n\n\n Effective for tax forms due after December 31, 2024, the ERIA provides for the following changes:<\/p>\n\n\n\n These bills provide relief to large employers and reduce their burden under the ACA\u2019s reporting requirements. If you have any questions about the subject of this article and its implications for your business, please contact Forework.<\/p>\n","protected":false},"excerpt":{"rendered":" On December 23, 2024, President Biden signed into law the Paperwork Burden Reduction Act (PBRA) and the Employer Reporting Improvement Act (ERIA), intended to simplify employer\u2019s Affordable Care Act reporting requirements. The laws allow (i) flexibility for employers to furnish 1095-B and 1095-C tax forms to employees electronically and only upon request, (ii) the use …<\/p>\n","protected":false},"author":1,"featured_media":1862,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","content-type":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-2125","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employment-articles"],"yoast_head":"\n\n