The Affordable Care Act Reporting Landscape: Recent Legislative Changes
Recent legislative changes have brought significant relief to employers grappling with the complexities of Affordable Care Act (ACA) reporting. The Employer Reporting Improvement Act (Act) and the Paperwork Burden Reduction Act , once signed into law by President Biden, will introduce several key modifications to the ACA’s reporting and enforcement rules. Background: Current ACA Reporting Requirements Under the current ACA regulations, plan sponsors, particularly ALEs, must report information about the health coverage they offer to employees using Forms 1095-B and 1095-C. These forms must be filed with the IRS and furnished to all full-time employees and employees receiving employer-sponsored coverage. Current ACA enforcement includes a tight 30-day turnaround to respond to IRS proposed Employer Shared Responsibility Payments (ESRP) assessments. These assessments are sent via US mail, often taking time to reach employer contacts. Thi...