By: HUB’s EB Compliance Team

The IRS has finalized rules that will require all employers subject to the Affordable Care Act (“ACA”) employer mandate, and nearly all other employers, to file information returns electronically.

The New Rules

Specifically, any employer filing 10 or more of various types of information returns in a year must file them electronically starting in 2024. (The current threshold is 250.)

This includes the Forms 1095-B or -C as well as various versions of the Form W-2 and 1098 and 1099 Series Forms, among others. All of these returns are counted together for purposes of the 10-return threshold, so an employer filing five Forms W-2 and five Forms 1099 would need to file them all electronically.

One practical effect of this change is that all employers subject to the ACA employer mandate will need to file electronically, since by definition they have 50 or more full-time and full-time equivalent employees. They will clear the 10-return threshold easily. Level-funded employers who previously relied on mailing in carrier-produced Forms 1095-B will now need to seek an electronic filing solution as well.

Getting Ready

All but the smallest of employers will now either need to learn how to e-file themselves or contract with a vendor to provide this service for them. Most employers will likely choose to work with a provider to complete the necessary filings. Payroll providers, many of whom already offer this service, will likely begin to offer it to even smaller employers than they do today. Employers who previously have not had to e-file should start looking for viable options in the coming months as they prepare for the 2024 filing season.

If you have any questions, please contact your HUB Advisor. View more compliance articles in our Compliance Directory.

NOTICE OF DISCLAIMER

Neither Hub International Limited nor any of its affiliated companies is a law or accounting firm, and therefore they cannot provide legal or tax advice. The information herein is provided for general information only, and is not intended to constitute legal or tax advice as to an organization’s or individual's specific circumstances. It is based on Hub International's understanding of the law as it exists on the date of this publication. Subsequent developments may result in this information becoming outdated or incorrect and Hub International does not have an obligation to update this information. You should consult an attorney, accountant, or other legal or tax professional regarding the application of the general information provided here to your organization’s specific situation in light of your or your organization’s particular needs.