On July 23, 2021, the IRS published a proposed rule that would expand the requirement to file certain information returns electronically, including those under the Affordable Care Act’s (ACA) reporting requirements, in addition to
, other common statements such as the W-2s and 1099s.
Under current ACA e-filing rules, an employer subject to the ACA’s employer mandate is not required to file its Forms 1094-C and 1095-C electronically unless the employer is submitting at least 250 of the forms to the IRS. Under the proposed rule:
- For Form 1094 series, Forms 1095-B and 1095-C, Form 1099 series, and Form 5498 series, electronic filing would be required for entities that file 100 or more returns for due dates in 2022, and 10 or more returns after that. The proposal would also require aggregation of most information returns when calculating these thresholds.
- Entities that file at least 10 returns of any type would be required to electronically file Form 5330 for tax years ending on or after the date final rules are published, and Form 8955-SSA for plan years beginning on or after January 1, 2022.
- For entities required to file Form 5500, the proposed rule would require entities that file at least 10 returns of any type to file Form 5500 electronically, effective for plan years beginning after December 31, 2021.
If the proposed changes are finalized, most employers will be required to file these forms electronically for filing due dates in 2022 going forward.
Next Steps for Employers
In light of these impending changes, employers not currently required to e-file may wish to beginning engaging the services of an ACA reporting and/or payroll vendor to comply with electronic filings requirements in the coming weeks.
HR Works will continue to monitor this and provided updated information as needed.