Newly Passed Legislation Modifies ACA Reporting Requirements
March 2025
At the end of 2024, Congress passed two new laws, the Paperwork Burden Reduction Act and the Employer Reporting Improvement Act. These laws eased the Affordable Care Act (ACA) reporting requirements for employers and set new limits on the IRS’ assessment of “pay-or-play” penalties, among other changes.
As background, the ACA requires applicable large employers (ALEs) and non-ALEs with self-insured health plans to provide information to the IRS about the health plan coverage they offer (or do not offer) to their employees. They must also provide related statements to individuals regarding their health plan coverage.
Previously, ALEs were required to provide each full-time employee with a statement regarding their health coverage (Form 1095-C) within 30 days of Jan. 31 each year. The IRS has allowed non-ALEs with self-insured health plans to provide health coverage statements (Forms 1095-B) to covered individuals upon request only. Beginning in 2025, this flexibility is extended to ALEs for furnishing Forms 1095-C.
Accordingly, employers are no longer required to send Forms 1095-C and 1095-B to individuals unless a form is requested. Employers must give individuals timely notice of this option in accordance with any requirements set by the IRS. Requests must be fulfilled by Jan. 31 of the year following the calendar year to which the return relates or 30 days after the date of the request, whichever is later. The statements may be provided electronically to individuals who have consented in the past.
ALEs and non-ALEs with self-insured plans are still required to file ACA returns with the IRS. The deadline for electronic filing is March 31, 2025.
In addition, ALEs are subject to IRS penalties if they do not offer affordable minimum essential coverage under the ACA’s employer shared responsibility (pay-or-play) rules. The new legislation increases the time ALEs have to respond to IRS penalty assessment warning letters from 30 days to 90 days. The legislation also imposes a six-year time limit on when the IRS can try to collect assessments.
4 Attraction and Retention Trends to Monitor in 2025
Employers will likely continue to struggle to attract and retain talented employees this year. An EY report found that 38% of employees are likely to leave their jobs in 2025. This article explores four attraction and retention trends for employers to watch in 2025.
- The Push for Return to Work
More employers worldwide are becoming “office advocates,” scaling back flexible work policies and mandating five-day in- office workweeks. However, many workers still value remote jobs and flexible work options, requiring employers to balance employee preferences with business needs.
- Growing Demand for GLP-1s
Weight loss drugs continue to grow in popularity. Since glucagon-like peptide-1 (GLP-1) treatment costs, on average, $1,000 per individual each month, workers may be looking for employer-sponsored coverage for these weight loss drugs and could make their employment decisions based on such offerings. While more employers are considering covering GLP-1s, many are concerned that they must be used for extended periods to be effective, requiring a long-term commitment.
- Gig Work Popularity
Gig work is quickly becoming a key component of the world economy. Organizations are increasingly competing with the appeal, accessibility and flexibility of gig work. Employers may explore ways to compete with the gig economy’s advantages by offering autonomy, schedule flexibility and faster access to earnings.
- The Rise of AI and Automation
Artificial intelligence (AI) and automation are undoubtedly changing the future of work. Reports show that as machines and algorithms begin performing manual tasks, millions of jobs will be created in areas such as data analysis, software development and cybersecurity. This means that many jobs employers are hiring for in 2025 and beyond may require advanced skill sets.
Employer Takeaways
Employers can remain competitive in an evolving labor market by monitoring employees’ current and prospective needs and wants throughout the year. Reach out today for more resources.
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