Who Needs to Report?

All ALEs must report their health coverage offerings, regardless of whether they actually offer insurance. The IRS uses this data to determine if employers owe penalties and whether employees are eligible for tax credits on the Health Insurance Marketplace.

Required Forms

To stay compliant, ALEs must submit two key IRS forms:

• Form 1094-C: A transmittal summary sent to the IRS.
• Form 1095-C: Sent to full-time employees upon request, outlining their health coverage details.

Important 2024 Reporting Deadlines

• Furnish Employee Statements Upon Request: January 31, 2025 (or 30 days after a request).
• File with the IRS (Electronic Submission): March 31, 2025.
• File with the IRS (Paper Submission – Limited to 10 Returns): February 28, 2025.

Avoiding Penalties

Failure to file the required forms or providing inaccurate information can lead to steep IRS penalties. If you're an ALE, it’s crucial to ensure accurate and timely reporting to avoid unnecessary fines.

Alternative Reporting Options

Some ALEs may qualify for simplified reporting methods:

• Qualifying Offer Method: For ALEs offering affordable coverage meeting federal poverty line standards.
• 98% Offer Method: For ALEs offering coverage to at least 98% of their full-time employees.

Final Thoughts

ACA reporting might feel overwhelming, but staying compliant is critical for avoiding penalties. Whether you handle reporting in-house or work with a third party, understanding your responsibilities as an ALE ensures a smooth process.

Need help navigating ACA compliance? Stay updated with the latest IRS guidelines and consult a tax professional if necessary!