On December 23, President Biden signed H.R. 3797, the Paperwork Burden Reduction Act, and H.R. 3801, the Employer Reporting Improvement Act, which affect Affordable Care Act (ACA) reporting requirements.
Here are some highlights of the provisions in the new laws that affect ACA requirements.
Form 1095-C may be furnished by request only. Effective for returns for calendar years after 2023, H.R. 3797 allows employers to furnish Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, to individuals by request only.
Employers will be treated as furnishing Form 1095-C timely if the employer provides the individual with notice that a copy is available upon request. The notice must be clear, conspicuous, and accessible to the individual. If an individual requests Form 1095-C, the employer must furnish it no later than January 31 of the year the form was required to be furnished or 30 days after the request.
Electronic delivery if consent given. Effective for returns due after December 31, 2024, H.R. 3801 allows for electronic delivery to individuals if the individual has consented to receive the copy electronically. The individual can revoke this consent in writing. The electronic consent provisions were part of IRS regulations, but they were not explicitly in the legislative text of the ACA. This legislation codifies the electronic delivery provision.
To learn more about federal and state laws, regulations, and information to keep your company's payroll operations in compliance, check out Payroll Source Plus!
Jyme Mariani, Esq., is Managing Editor of Payroll Currently and Senior Manager of Payroll Information Resources for PayrollOrg.