As the year ends, it’s crucial to address your Affordable Care Act (ACA) reporting requirements. The 2024 ACA reporting deadlines are approaching fast, and failure to meet these obligations can result in substantial penalties, ranging from hundreds to millions of dollars, depending on the severity of the issue. Let’s review what you need to know to stay compliant and avoid these costly mistakes.

ACA Reporting Penalties

The IRS imposes significant penalties for late or inaccurate filings under Sections 6721 and 6722 of the Internal Revenue Code. For example:

  • Failing to file ACA forms on time can result in penalties of up to $330 per return for large businesses and $110 per return for small businesses.
  • Filing more than 30 days late increases penalties, with fines up to $660 per return for large businesses or $220 per return for small businesses, depending on the delay.
  • Intentionally neglecting to file results in penalties of $660 per return with no maximum limit.
  • Providing incorrect or incomplete information can result in similar fines, compounded if corrections are not promptly made.

These penalties add up quickly, particularly for employers filing dozens or hundreds of forms. Don’t risk these unnecessary expenses—ensure your reporting is done right the first time.

When is ACA Reporting Due in 2024?

Understanding and meeting ACA deadlines is critical to avoid penalties. Here are the key dates to mark on your calendar:

  • Employee Statements (Forms 1095-B/1095-C): Employers must distribute these forms to employees by January 31, 2025. This ensures employees have the information needed for their tax filings.
  • IRS Filing Deadlines:
    • Electronic Filing (Required for 10 or more total forms): Due by March 31, 2025.
    • Employers filing fewer than 10 forms may submit paper filings, but these are due by February 28, 2025.

Missing these deadlines or submitting incomplete filings can lead to steep fines, but with proper planning and support, you can stay compliant.

ACA Reporting Forms

Depending on the size of your business and your offering, there are different ACA reporting forms that must be submitted.

Small Employers Offering Self-Funded Plans

Small employers (fewer than 50 FTEs) that offer self-funded health plans, including standalone HRAs, must report coverage using Forms 1095-B and 1094-B.

Applicable Large Employers (ALEs)

Employers with 50 or more full-time and full-time equivalent (FTE) employees in the prior calendar year must:

Penalties for ALEs failing to comply with the coverage mandate (under Section 4980H) can be substantial:

  • 4980H(a): $2,970 per full-time employee if coverage isn’t offered.
  • 4980H(b): $4,460 per employee if the coverage isn’t affordable or doesn’t meet minimum value.

Employers Offering ICHRAs

No matter your company’s size, offering an Individual Coverage HRA (ICHRA) triggers ACA reporting requirements. ICHRAs are considered self-funded group health plans, and employers must:

  • Report ICHRA offerings on Forms 1095-B (non-ALEs) or 1095-C (ALEs).
  • Include details on affordability and eligibility for individual market coverage.

Avoid ACA Reporting Penalties with a Benefits Administrator

Flyte HCM offers tailored ACA compliance solutions to protect your business and simplify reporting. Here’s how we can help:

  • End-to-End Reporting: Data compilation, validation, ACA coding, and form generation.
  • State and Federal Reporting: Includes compliance with new state-level ACA reporting laws.
  • Error-Free Guarantee: If we make a reporting error, we cover the penalties.
  • Dedicated Account Management: Access to phone and email support for premium customers.
  • Electronic Filing and Audit Programs: Streamlined processes for accurate filings and corrections.
  • Printing and Mailing Services: We handle all aspects of employee communications.
  • ICHRA-Specific Reporting: Expertise in ensuring compliance for ICHRAs, no matter your company size.

Don’t risk costly penalties or let ACA reporting overwhelm your team. Flyte HCM’s guaranteed solutions ensure your compliance, freeing you to focus on growing your business. Contact us today to get started.