For employers subject to the Affordable Care Act (ACA), staying compliant with reporting requirements is non-negotiable. With 2025 due dates just around the corner, now is the time to prepare for distributing Forms 1095-C to employees and filing with the IRS. These forms provide essential information about health coverage offered to employees and are critical for demonstrating compliance with the ACA’s employer mandate. Missing these deadlines can lead to potential costly penalties and compliance headaches.
Key ACA Reporting Deadlines for 2025
Here are the critical dates you need to mark on your calendar for reporting on the 2024 tax year:
- March 3, 2025:
Deadline for furnishing Form 1095-C to employees.
Employers must provide their employees with a copy of Form 1095-C, which details the health coverage offered, by this date.
- February 28, 2025:
Deadline for paper filing with the IRS.
Employers filing fewer than 10 forms (aggregated with other forms, such as W-2, 1099) may submit paper forms to the IRS. Note: Paper filing is only an option for small employers below the e-filing threshold.
- March 31, 2025:
Deadline for electronic filing with the IRS.
Employers submitting 10 or more forms are required to file electronically. The extra time provided for electronic filing gives employers a little breathing room, but it’s essential to plan ahead and avoid last-minute delays.
Penalties for Missing ACA Reporting Deadlines
Failing to meet ACA reporting deadlines can result in hefty penalties:
- Late Furnishing to Employees:
Employers can be fined up to $310 per form for not providing Form 1095-C to employees byMarch 3, 2025.
- Late Filing with the IRS:
Penalties start at $60 per form for filing within 30 days of the deadline but can escalate to $310 per form for longer delays.
- Incorrect or Incomplete Information:
Filing forms with incorrect data, such as employee names or Social Security Numbers, can lead to additional penalties.
- Intentional Disregard:
If the IRS determines that an employer intentionally ignored filing requirements, penalties can skyrocket to $630 per form with no annual cap.
Checklist to Stay on Track for ACA Reporting in 2025
Use this checklist to ensure timely and accurate submissions:
- Verify Employee Data:
Review employee names, SSNs, and coverage details for accuracy.
- Select Your Filing Method:
Determine whether you’ll file on paper (if eligible) or electronically. Ensure you have the necessary software for electronic submissions.
- Monitor Deadlines:
Set reminders for March 3(employee furnishing), February 28 (paper filing), and March 31 (electronic filing).
- Test Your Process:
If filing on your own, conduct a test submission through the IRS AIR system to identify potential errors before the official filing.
- Leverage Technology:
Use an ACA compliance software solution to automate form generation, validation, and submission.
- Train Your Team:
Ensure HR, payroll, and benefits teams understand the reporting requirements and deadlines.
- Work with Experts:
Consider outsourcing ACA compliance to a trusted vendor if your internal resources are limited.
Conclusion
ACA reporting doesn’t have to be overwhelming—preparation is key. By understanding the deadlines, filing methods, and potential pitfalls, employers can stay compliant and avoid penalties. With the reporting season fast approaching, now is the time to finalize your plans, gather your data, and ensure you’re ready to meet the 2025 deadlines.
Need help simplifying your ACA reporting process? Mitratech’s Mineral Platform offers an ACA Reporting Tool designed to streamline your reporting and keep your business on track.
Contact us today to learn more!
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