ACA Reporting Deadlines for 2025: What You Need to Know

What Is the ACA And Who Does It Impact?

The Affordable Care Act (ACA), is a comprehensive healthcare reform law enacted in 2010. Its primary goals are to expand health insurance coverage to uninsured Americans, improve the quality of healthcare, and reduce the growth of healthcare spending. Unfortunately, it also means more work for HR leaders.
The ACA impacts various groups, including:

• Employers. Applicable Large Employers (ALEs), those with 50 or more full-time employees (including full-time equivalents), are subject to the mandate. This means they must offer affordable coverage that provides minimum value and constitutes minimum essential coverage to their full-time employees and their dependents to avoid penalties. They are also subject to specific reporting requirements. Self-insured employers, regardless of size, have reporting obligations, with ALEs filing Forms 1094-C and 1095-C, and non-AEs filing Forms 1094-B and 1094-C.
• Individuals. The ACA primarily targets individuals without health insurance, providing them with access to coverage through Medicaid expansion, the health insurance marketplace, or subsidies.
• Insurers. The ACA imposes regulations on health insurance companies, such as requiring them to cover certain essential health benefits, prohibiting them from denying coverage based on pre-existing conditions and from imposing lifetime and annual coverage limits.

Key ACA Reporting Deadlines for 2025

Every year, the ACA reporting deadlines are a bit different. For 2025, they fall in line with previous years, but they are coming quickly.

Here are the critical dates you need to mark on your calendar for reporting on the 2024 tax year:

• March 3, 2025: Deadline for furnishing Form 1095-B and 1095-C to employees. Employers must provide their employees with a copy of Form 1095-B and 1095-C, which details the health coverage offered.
• February 28, 2025: Deadline for paper filing with the IRS. Employers filing fewer than 10 forms (aggregated with other forms, such as W-2, 1099) may submit paper forms to the IRS. Note: Paper filing is only an option for small employers sponsoring self-funded or level-funded plans that fall below the e-filing threshold.
• March 31, 2025: Deadline for electronic filing with the IRS. Employers submitting 10 or more forms (aggregated with other forms, such as W-2, 1099) are required to file electronically. This extra time gives employers a little breathing room, but it’s essential to plan ahead and avoid last-minute delays.

What Happens If You Don’t Reach These Deadlines?

Failing to meet ACA reporting deadlines can result in hefty penalties:

• Late Furnishing to Employees. Employers can be fined up to $330 per form for not providing Form 1095-B or -C to employees.
• Late Filing with the IRS. Penalties start at $60 per form for filing within 30 days of the deadline but can escalate to $330 per form for longer delays.
• Incorrect or Incomplete Information. Filing forms with incorrect data, such as employee names or Social Security Numbers, can lead to penalties.
• Intentional Disregard. If the IRS determines that an employer intentionally ignored filing requirements, penalties can skyrocket to $660 per form with no annual cap.

While the core reporting requirements remain consistent, it’s crucial to stay updated on any potential changes or guidance issued by the IRS. Checking the IRS website and consulting with ACA compliance experts is recommended for the most current information.

For example, there can be changes to penalty amounts annually due to inflation adjustments. Always check the most recent IRS publications for the most up to date information.

Tips To Meet Those Deadlines

1. Start Early. Don’t wait until the last minute. Begin gathering and verifying employee data well in advance of the deadlines.
2. Use Technology! Invest in ACA reporting compliance software to streamline the reporting process and minimize errors.
3. Stay Organized. Maintain accurate records of employee coverage and ensure data is readily accessible.
4. Communicate with Employees. Inform employees about the reporting process and the importance of receiving their Form 1095-B or -C.
5. Seek Professional Help. If you’re unsure about any aspect of ACA reporting, consult with an ACA reporting compliance expert or tax professional.

Where Can You Go For More Information?

IRS Website: The IRS website (irs.gov) is the primary source for official information on ACA reporting requirements. Search for “ACA Information Returns (AIR) Program” and related publications.

• Department of Labor (DOL): The DOL also provides resources related to the ACA, particularly regarding employer responsibilities.
• Mineral Experts: If you are a Mitratech Mineral user, you can utilize the Mineral Experts to answer any questions you may have.
• Tax and Benefits Professionals: Consulting with a qualified tax advisor or employee benefits consultant can provide personalized guidance.