Welcome Changes To ACA Compliance For Employers

Two bills were signed into law on December 23, 2024, that reduced the reporting burdens for employers under the Affordable Care Act (ACA). Together, the Paperwork Burden Reduction Act (PBRA) and the Employer Reporting Improvement Act (ERIA) simplify ACA compliance for employers.

Under PBRA, employers are no longer required to automatically send Forms 1095-B or 1095-C ("Forms") to employees. Instead, employers must provide an easily accessible notice that clearly informs employees of their right to request these Forms. If a Form is requested, the employer must provide it by January 31 or within 30 days of the request, whichever is later. This change is effective beginning with the 2024 calendar year. PBRA further provides that the Internal Revenue Service (IRS) may issue future guidance detailing the time and manner of this notice.