Recent updates to the Affordable Care Act (ACA) have introduced key legislative changes affecting Applicable Large Employers (ALEs). The Employer Reporting Improvement Act (H.R. 3801) and the Paperwork Burden Reduction Act (H.R. 3797) aims to streamline reporting and reduce administrative burdens. Employers must understand these modifications to ensure compliance and avoid potential penalties.

Key Changes Under the Employer Reporting Improvement Act

This act introduces several updates to enhance ACA reporting for employers:

• Extended Response Time for IRS Notices: Employers now have 90 days instead of 30 to respond to IRS Letter 226J regarding shared responsibility penalties.


• Alternative to TIN Reporting: If an employee’s Social Security Number (SSN) or Taxpayer Identification Number (TIN) is unavailable, employers may now use the employee's birthdate for reporting.


• Electronic Form Delivery: Employers can now provide ACA forms electronically if employees consent. Those employees who do not opt in must still receive paper forms.


• New Statute of Limitations: The IRS has up to six years to assess employer penalties on ACA filings due after December 31, 2024.

Updates Under the Paperwork Burden Reduction Act

This act changes the way employers distribute Forms 1095-C and 1095-B, reducing the automatic mailing requirement:

• On-Demand Form Requests: Employers are no longer required to mail these forms automatically. Instead, employees must request them when needed.


• Mandatory Employee Notification: Employers must clearly communicate that forms are available upon request, following IRS guidelines.


• Timely Response Obligation: Once a request is received, employers must provide the form by January 31 of the following year or within 30 days of the request.

What These Changes Mean for Employers

With these legislative updates, employers need to adapt their compliance strategies:

• Tracking Employee Requests: Businesses must implement efficient systems to monitor and respond to ACA form requests.


• Managing Compliance for High-Turnover Workforces:Employers must ensure that departing employees are aware of their ability to request ACA forms to avoid compliance risks.


• State-Specific Compliance: Some states may still require automatic mailing of ACA forms, so employers must stay informed about both federal and state regulations

How ACA Compliance Solution Services Can Help

Navigating these legislative changes can be complex, but ACA Compliance Solution Services, Inc. specializes in helping businesses stay compliant with all ACA reporting requirements. Our team of experts provides tailored solutions and expert support to simplify the process.

By partnering with us, employers can minimize risks, avoid costly penalties, and focus on their core business operations with confidence. Contact us today at 877-959-3953 or Click Here to streamline your ACA compliance process.