New ACA Compliance, Reporting, and Penalty Rules: Avoiding IRS Audits and Penalties, Best Practices for Counsel

BARBRI

This CLE course will provide guidance to employee benefits counsel on effective methods to comply with Section 4980H of the Affordable Care Act (ACA) and new penalty rules provided under the Employer Reporting Improvement Act (ERIA) and the Paperwork Burden Reduction Act (PBA). The panel will discuss new compliance, reporting, and penalty rules; the challenges in classifying employees correctly under the monthly or look-back measurement methods; determining affordability; properly reporting offer and coverage information; and effective planning and compliance techniques to avoid IRS audits and penalties.

Description

The ACA's reporting provisions require employers to file informational returns with the IRS and annual statements to employees. Even though the employer mandate only applies to "applicable large employers," large and small employers have reporting requirements.

To satisfy the coverage and reporting requirements of the ACA, employers must overcome a variety of challenges such as employee classification issues, reporting requirements for employers who are part of a "controlled group," and completing Forms 1094-B, 1095-B, 1094-C, and 1095-C. Businesses with filing requirements must meet these compliance requirements or face stiff penalties.

On Dec. 23, 2024, both the ERIA and the PBRA were signed into law, providing some relief to employers subject to ACA reporting requirements and penalty assessments. The combination of these Acts covers, along with other key items, (1) distribution of Forms 1095-B and 1095-C to covered individuals, (2) permitting electronic delivery of these forms under certain conditions, (3) IRS Letter 226-J, and (4) statute of limitations for IRS penalty assessments.

Listen as our authoritative panel of ACA experts discusses the new reporting and penalty rules and offers planning techniques to ensure employer compliance with the ACA's coverage and reporting requirements. The panel will offer guidelines for both applicable large employers and small employers who are not subject to the employer mandate but may still have reporting obligations, as well as outline the steps employers should take to avoid IRS audits and penalties.

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