Fast-Approaching Deadlines for ACA Reporting and Similar State Reporting

Category: Federal & State Compliance

Written by Juliana Reno, Lisa A. Tavares and Ryann M. Aaron from Venable LLP on January 21, 2025

This alert describes upcoming reporting deadlines under the Affordable Care Act (ACA) and under state laws that require similar reporting. Generally, reporting that relates to health coverage in one calendar year is due early in the following calendar year. With respect to health coverage in 2024, the ACA deadlines range from February 28, 2025 to March 31, 2025, and the state deadlines range from January 31, 2025 to April 30, 2025. All of the reporting discussed in this alert relates to health coverage in 2024.

Recent Legislation

Laws enacted at the end of 2024 made important changes to the ACA reporting requirements. (Our previous alert regarding the ACA reporting changes can be found here.) The reporting requirements described in this alert incorporate the changes made by the new laws.

The laws authorize the IRS to issue new guidance on the ACA reporting changes for furnishing certain forms to individuals. Current IRS regulations already provide similar guidance as described below. We believe employers may rely on the current regulations as a best practice until the IRS issues new guidance.

Affordable Care Act Reporting

Reporting Requirements for Applicable Large Employers (ALEs). In general terms, an employer was an ALE in 2024 if it averaged 50 or more full-time equivalent employees during 2023.

Option One

  • An ALE must provide a Form 1095-C to any employee who was full-time for any month in 2024. (For these purposes, “full-time” is defined by the ACA!) The forms must be postmarked, hand-delivered, or emailed by March 3, 2025. Email may be used only if the individual has consented to electronic delivery of the form.
  • An ALE must also file a copy of the Forms 1095-C, together with a Form 1094-C, with the IRS. For paper filers, the deadline is February 28, 2025. (Paper filing is permitted only for employers filing fewer than 10 information returns. An ALE is unlikely to fall into this category.) For electronic filers, the deadline is March 31, 2025.

Option Two

  • The employer must post a notice on its website stating that employees may obtain a Form 1095-C upon request, and the employer must make the Form 1095-C available within 30 days of the request (or January 31, if later). Important Note: Current IRS regulations provide guidance regarding the form and timing of a similar type of notice. The guidance states that the notice must include both an email address and a physical address where requests may be sent, as well as a phone number that employees can use to contact the employer with questions. The regulatory deadline for posting the notice is March 3, 2025. We believe employers may rely on the current regulations as a best practice until the IRS issues new guidance.
  • An ALE must also file a copy of the Forms 1095-C, together with a Form 1094-C, with the IRS. For paper filers, the deadline is February 28, 2025. (Paper filing is permitted only for employers filing fewer than 10 information returns. An ALE is unlikely to fall into this category.) For electronic filers, the deadline is March 31, 2025.
  • Although this option largely allows the employer to avoid a mass mailing to employees, the employer still needs to be able to generate the individual forms.

Reporting Requirements for Employers Offering a Self-Funded Major Medical Plan. These employers—small or large—have two compliance options, which are nearly the same as the options described above.

Option One

  • The employer must provide Form 1095-C or Form 1095-B to any individual who was covered by the self-funded plan in 2024 (not just to full-time employees). The forms must be postmarked, hand-delivered, or emailed by March 3, 2025. Email may be used only if the individual has consented to electronic delivery of the form.
  • In addition, the employer must file copies of the individual forms, together with a Form 1094-C or 1094-B, with the IRS. For paper filers, the deadline is February 28, 2025. (Paper filing is permitted only for employers filing fewer than 10 information returns. Employers with self-funded plans are unlikely to fall into this category.) For electronic filers, the deadline is March 31, 2025.
  • Important Note. If the employer is subject to state reporting (see the next section of this alert), Option One is generally preferable. Furnishing Form 1095-C or 1095-B will often satisfy the state requirement to notify individuals.

Option Two

  • The employer must post a notice on its website stating that employees may obtain a Form 1095-C or Form 1095-B upon request, and the employer must make the form available within 30 days of the request (or January 31, if later). Important Note: Current IRS regulations provide guidance regarding the form and timing of a similar type of notice. The guidance states that the notice must include both an email address and a physical address where requests may be sent, as well as a phone number that individuals can use to contact the employer with questions. The deadline for posting the notice is March 3, 2025. We believe employers may rely on the current regulations as a best practice until the IRS issues new guidance.
  • The employer must file copies of the individual forms, together with the Form 1094‑C or 1094-B, with the IRS. For paper filers, the deadline is February 28, 2025. (Paper filing is permitted only for employers filing fewer than 10 information returns. Employers with self-funded plans are unlikely to fall into this category.) For electronic filers, the deadline is March 31, 2025.
  • It is important to note that while this option largely allows the employer to avoid a mass mailing to individuals, the employer still needs to be able to generate the individual forms.

State Reporting

In 2017, Congress eliminated the ACA’s individual mandate penalty. However, certain states and the District of Columbia impose an individual mandate at the state level. Those jurisdictions impose reporting requirements on employers. The state reporting obligations generally require the employer to furnish paper forms to individuals. The “posting” options described above do not apply unless specifically noted.

California

January 31, 2025. Deadline to provide information returns to individuals

March 31, 2025. Deadline to file returns electronically with the California Franchise Tax Board

Action Items:

  • Employers with self-funded major medical plans: Provide federal information returns (Form 1095-C for large employers, Form 1095-B for small employers) to California. residents. The same forms must be filed with the California Franchise Tax Board.
  • Employers with fully insured plans: Contact the insurer to confirm that it is filing Form 1095-B with the California Franchise Tax Board.

District of Columbia

March 3, 2025. Deadline to provide information returns to individuals

April 30, 2025. Deadline to file information returns electronically with the DC Office of Tax and Revenue

Action Items:

  • Employers with self-funded major medical plans: Provide federal information returns (Form 1095-C for large employers, Form 1095-B for small employers) to DC residents. The same forms must be filed with the DC Office of Tax and Revenue.
  • Large employers with fully insured plans: Provide federal information returns (Form 1095-C) to DC residents. The same forms must be filed with the DC Office of Tax and Revenue.
  • Small employers with fully insured plans: No DC reporting obligation.

Massachusetts

January 31, 2025. Deadline to provide Form MA 1099-HC to individuals

January 31, 2025. Deadline to file Form MA 1099-HC with the Massachusetts Department of Revenue

New Jersey

March 3, 2025. Deadline to provide information returns to individuals.

March 31, 2025. Deadline to file returns electronically with the New Jersey Division of Taxation.

Action Items:

  • Employers with self-funded major medical plans: Provide federal information returns (Form 1095-C for large employers, Form 1095-B for small employers) to New Jersey residents. The same forms must be filed with the New Jersey Division of Taxation.
  • Employers with fully insured plans: Contact the insurer to confirm that it is filing Form 1095-B with the New Jersey Division of Taxation.

Rhode Island

March 3, 2025. Deadline to provide information returns to individuals.

March 31, 2025. Deadline to file returns electronically with the Rhode Island Division of Taxation.

  • Employers with self-funded major medical plans: Provide federal information returns (Form 1095-C for large employers, Form 1095-B for small employers) to Rhode Island residents. The same forms must be filed with the Rhode Island Division of Taxation.
  • Employers with fully insured plans: Contact the insurer to confirm that it is filing Form 1095-B with the Rhode Island Division of Taxation.

Vermont

Although it has an individual mandate, Vermont does not currently have a reporting requirement.