The Paperwork Burden Reduction Act introduced significant changes to the way businesses handle health coverage reporting, especially concerning the distribution of the 1095-B and 1095-C forms. As a business owner, staying updated on these changes is crucial to ensure compliance with federal reporting requirements and avoid potential penalties.
What’s Changed?
Previously, larger businesses were required to provide physical copies of the 1095-B and 1095-C forms to all employees, even those who received healthcare coverage through a third-party provider. However, under the new regulations of the Paperwork Burden Reduction Act, some healthcare carriers now instruct employees to access their forms directly through online portals. Instead of mailing physical forms, your employees are now responsible for logging into their insurer’s website and downloading their 1095-B or 1095-C forms themselves. This change aims to reduce administrative overhead for businesses and streamline the distribution process.
For small businesses with fewer than 50 employees, carriers used to mail the forms for you. Now, some carriers will still mail forms while others will require your employees to utilize the online portal. It would be wise to reach out to them to ensure you’re aware of the new procedure.
What Does This Mean for Employers?
While the shift to electronic distribution may reduce some of the burden on employers, it does not eliminate your responsibility to ensure that employees have access to their forms. As the employer, you are still required to notify employees about the availability of these forms. This can typically be done through email or via your company’s internal communication channels. You should provide clear instructions on how employees can access their forms, especially if they are new to using the portal.
In addition, you should also ensure that employees who do not have access to the internet or who have difficulty using the portal receive their forms in another manner, such as by mail (this is not likely to be common). They can call the member service phone number listed on their ID card to request a paper copy of their forms.
If employees do not take action to retrieve their forms, it is crucial that you have a process in place to follow up and provide them with assistance.
Key Deadlines
The deadline for distributing the 1095-B and 1095-C forms to employees remains the same under the new rules. Employers must ensure that forms are received by employees by March 3, 2025, to comply with Internal Revenue Service (IRS) reporting guidelines. For employers filing these forms with the IRS, the deadline for is February 28, 2025 for paper submissions or March 31, 2025 for electronic submissions.
Next Steps for Employers
As a business owner, it’s important to stay on top of these changes and make sure your employees know where and how to access their forms. If you have questions or need assistance navigating the new distribution requirements, don’t hesitate to reach out to the benefits specialists at Bay Area Health Insurance. Our team is here to help you ensure that your business remains compliant with the latest healthcare reporting rules.
As the1095-B and 1095-C deadlines approach, contact us right away to learn more about how we can help you manage this process smoothly.
