New ACA Reporting Rules: What Employers Need to Know
Big changes are here for ACA reporting, and for once, they might actually make your life a little easier. Thanks to two new laws — the Paperwork Burden Reduction Act and the Employer Reporting Improvement Act — employers now have more flexibility in how they furnish Form 1095-C to employees. But that flexibility does come with some fine print.
If you’re trying to sort out what’s changed (and what hasn’t), we’ve got you covered. Here’s a practical breakdown to help you stay compliant, and a few pitfalls to avoid.
1. Can we now provide Form 1095-C only upon request?
Yes, with caveats. Under the Paperwork Burden Reduction Act (PBRA), employers can post a notice on their website letting employees know the forms are available, and only send them if requested. But this only applies at the federal level.
If you’re operating in Massachusetts, California, New Jersey, Rhode Island, or D.C., you’re still required to furnish the forms directly to comply with state individual mandates. This new rule doesn’t override those state laws.
2. What options are available for distributing Form 1095-C?
There are three options available:
- You can mail them.
- You can provide them electronically with affirmative consent
- You can make them available by posting the statement on your website, with request forms
3. What counts as proper notice for Form 1095-C requests?
To use the new “upon request” method, you must:
- Post a clear and conspicuous notice on a public-facing website (not behind a login wall or buried in a portal) by March 3, 2025.
- Include instructions for how individuals can request their form.
- Leave the notice up from March 3, 2025, through October 15, 2025, for the 2024 reporting year.
An email alone won’t cut it, though you can email the actual forms if the employee has given proper consent.
4. When do we have to send the form if someone requests it?
You must furnish Form 1095-C within 30 days of the request. If the employee has opted in for electronic delivery, you can send it that way. Otherwise, mail a paper copy to their last known address.
5. Do we have to get consent every year?
No. You can structure the consent form to be evergreen, so you do not have to get them to consent every year.
6. What are the rules for providing Form 1095-C electronically?
You can only email the form if the employee has given affirmative consent specifically for Form 1095-C. That consent can’t be bundled with other electronic documents like SPDs or handbooks.
The consent form must include:
- The option to receive the form in paper format
- Instructions for withdrawing consent
- Information on how to update their contact info
If an email bounces, the employer is responsible for following up, and if electronic or email delivery fails, you must mail the form.
7. What if we can’t get a Social Security Number?
The Employer Reporting Improvement Act allows employers to use a person’s full name and date of birth if a TIN (SSN) isn’t available — but only after a good-faith effort to collect it.
You still need to follow the IRS’s TIN solicitation process:
- Initial request
- First annual follow-up by December 31 of the first year
- Second annual follow-up by December 31 of the next year
Using name and DOB should always be seen as a fallback option, rather than a replacement.
8. Can we just post the notice on our employee portal or Intranet?
No. The notice must be accessible to anyone entitled to a 1095-C, including former employees, so it needs to be on a public-facing site without login credentials. You can link to it from internal systems, but the notice itself must be openly visible.
9. Can an email to employees be a substitute for the website posting?
No. Under current regulations, email alone does not meet the notice requirements.
The law specifically requires a “clear and conspicuous” notice to be posted on the employer’s website, accessible to any individual who is entitled to receive a Form 1095-C. This ensures that anyone who misses the email can still access the information.
However, if you’ve received affirmative consent for electronic delivery, you may email the forms directly, but this is separate from the required website posting.
10. Does the notice posting period of March 5, 2025 to October 15, 2025 apply to the 2024 reporting year or the 2025 reporting year?
The posting period applies to the 2024 reporting year. Forms for 2024 are typically ready and posted in early 2025, and the notice must remain available through October 15, 2025.
This ensures individuals, especially those filing late or on extension, still have access to their Form 1095-C.
11. Do these changes eliminate the need to e-file with the IRS?
No. All Applicable Large Employers (ALEs) must still e-file their 1095 forms with the IRS. The new laws only impact how you furnish the forms to individuals, not your IRS filing obligations.
The Bottom Line
These legislative changes offer welcome flexibility, but only if you implement them carefully. Posting the right notices, managing consent properly, and knowing where federal and state rules diverge are key to staying compliant.
At Selerix, we help employers navigate this kind of complexity every day. Our ACA solutions are designed to reduce manual effort, minimize risk, and keep you aligned with evolving requirements. For more information, watch our recent webinar on this topic!
Need help adapting to the new rules? Let’s talk about how we can simplify your ACA reporting.
