The landscape of Affordable Care Act (ACA) reporting is evolving, and as we move towards 2024, there are significant changes that employers need to be aware of. The IRS has introduced new rules, altering the way we approach ACA reporting, and it’s crucial for businesses to stay informed and prepared.
Changes in Reporting: What’s New in 2024
With the IRS introducing adjustments to the ACA’s reporting procedures for 2024, understanding these updates is key to ensuring a smooth transition. Here’s a detailed look at what’s on the horizon:
Moving to Electronic Filing
- Lower Threshold: Previously, only employers filing 250 or more forms like the 1095s needed to file electronically. Now, that number has dropped to just 10. If you’re filing 10 or more tax-related forms, you must do it electronically.
- Count All Your Tax Forms Together: It’s not just about how many 1095 forms you have. You need to add up all the different tax forms you’re filing – 1095s, 1099s, W-2s, and others – to see if you hit that 10-form threshold for mandatory electronic filing.
What Large Employers Need to Know
- Are You an ALE?: ALE stands for Applicable Large Employer, which means you have 50 or more full-time employees. If you’re an ALE, you have specific duties to report the health coverage you offer your employees.
- Details are Crucial: Make sure you’re reporting the right details about the health coverage for each employee. Accuracy is key to avoiding penalties.
How to Stay on Top of These Changes
These changes require a proactive approach to compliance. Here’s what you can do:
- Get Ready for the Switch: If you haven’t already, it’s time to make the switch to electronic filing. Check your systems, explore software solutions, and ensure you’re ready.
- Ensure Accuracy and Timeliness: Double-check all the information you submit and make sure you’re filing on time. The IRS is strict about accuracy and deadlines.
- Documentation is Everything: Keep a meticulous record of employee hours, health coverage details, and all the data you need for reporting. This not only helps in reporting but is also vital if you’re ever audited.
- Stay Informed and Seek Help When Needed: Stay in the loop with the latest news and updates from the IRS on ACA reporting. If you need help navigating through the requirements, don’t hesitate to reach out.
Keeping Your Organization ACA Compliant
Navigating ACA reporting and compliance is key to providing appropriate healthcare coverage to employees. But remember – you’re not alone. If you need expert assistance or want to learn more, discover how eBen can help you today.