New Bills Aimed to Reduce ACA Employer Reporting

Savoy

Our compliance experts, Colleen Patterson and Sara Simkins, sit down to discuss two new bills signed into law on December 23, 2024.

The Employer Reporting Improvement Act and Paperwork Burden Reduction Act are both aimed at easing employer reporting requirements at the federal level. Some highlights include:

• Employers are no longer required to deliver 1095 forms to covered individuals unless requested. 
• ALEs may substitute a date of birth in instances where an SSN or a TIN is not available.
• Extended the employer response time for Letter 226-J to 90 days.
• Established a six-year statute of limitations on the IRS for returns that are due after December 31, 2024.
• Formalized the practice that ALEs may furnish ACA forms to individuals electronically provided the individual has consented.

Be sure you and your employer clients understand these changes and how it will affect their reporting obligations and internal processes moving forward.

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