Section 6056 of the Affordable Care Act (ACA) requires applicable large employers (ALEs) (50 or more full-time equivalents) to provide information to the IRS and employees about the health plan coverage they offer to their employees. Self-insured ALEs must also provide information to the IRS and employees about the health plan coverage provided to individuals. Reporting is done using Forms 1094-C and 1095-C. The forms are due to employees by March 1, 2024, and are due to the IRS by February 28, 2024 (April 1, 2024, if filing electronically). The IRS has released the final 2023 forms and instructions for reporting.
As a reminder, this year, organizations filing 10 or more returns or statements in a calendar year will be required to electronically submit these returns to the IRS. Previously, the mandatory filing requirement was reserved for organizations with 250 or more returns.
Information returns or statements may include, but not be limited to the following:
- Form W-2;
- Form 1099-NEC;
- Form 1099-MISC;
- Form 1099-R;
- Form 1095-C;
- Form 1095-B;
- Form 1094-C; and
- Form 1094-B.
Businesses must total all information returns to determine whether they meet the 10-return threshold. In addition, an employer that must file its information returns electronically must also file any corrected information returns electronically, regardless of the number of corrected forms it must file.
Employers should be aware that the reduced threshold does not apply to employment tax returns, such as Forms 940 and 941. Impacted employers that use a third-party administrator such as a payroll processor for the filings may wish to consult with their vendor to determine if their services will extend to meeting this new requirement. Employers should also consult with their tax professionals to ensure they are prepared to comply in 2024.
Additional guidance on reporting requirements is available in these frequently asked questions on the IRS’ website.