On December 23, 2024, President Biden signed into law the Paperwork Burden Reduction Act (PBRA) alleviating some burdens associated with the annual ACA reporting. Effective for tax years beyond 2023, employers are no longer required to automatically distribute the Forms 1095-B/Cs to employees unless requested. The Form 1095-B/Cs must still be prepared and electronically filed with the IRS by March 31st of each year.
The Paperwork Burden Reduction Act addresses the reporting of Forms 1095-B. Previously, employers were required to send these forms to all employees, and the IRS permitted employers to make the forms available only upon request. The new law codifies this approach, easing the paperwork burden on employers. Furthermore, the bill allows employers to apply the same approach to Form 1095-C, meaning these forms can be provided only when employees request them, rather than being automatically distributed to all employees.
Note to those employer groups who have historically distributed the 1095-B and C forms to their employees:
In lieu of automatically distributing copies to the employees, employers are allowed to provide a “clear, conspicuous and accessible” notice of the employees’ ability to request a copy. A sample template notice is here for your convenience.
Employers wishing to take advantage of this relief should post the notice on their company website, intranet or distribute copies electronically or by paper making employees aware of their ability to request a copy of their individual Form 1095-B/C.
For employer groups who engage a vendor for these services, please contact your vendor with questions on how they are addressing this change.