2 New Laws Signed to Ease Employer Reporting Burden

President Biden signed the Paperwork Burden Reduction Act and the Employer Reporting Improvement Act into law on December 23, 2024. Both bills are designed to streamline the reporting process and reduce the administrative workload for employers and health insurance providers. 

Paperwork Burden Reduction Act - H.R.3797 — 118th Congress (2023-2024)

The Paperwork Burden Reduction Act modifies ACA reporting requirements so that employers and health insurance providers are no longer required to send tax forms to covered individuals showing proof of minimum essential coverage (1095-B and 1095-C tax forms) unless a form is requested. Covered individuals can request their tax forms, and requests must be fulfilled by January 31 or 30 days after the date of the request, whichever is later.

Employers and health insurance providers must provide clear, conspicuous, and accessible notice that any covered individual may request a copy of their tax forms.

The Paperwork Burden Re

Employer Reporting Improvement Act - H.R.3801 — 118th Congress (2023-2024)

This Employer Reporting Improvement Act modifies the reporting requirements under the Patient Protection and Affordable Care Act (ACA). The bill includes four sections of modifications:

• TIN Reporting Flexibility: Employers can use an individual’s name and date of birth if they are unable to collect the Taxpayer Identification Number (TIN).
• Electronic Statements: Employers can send the statement electronically if the individual has consented to receive such statement in electronic form.
• Time for Response: Applicable large employers will have 90 days to respond to the first letter which informs the employer of a proposed assessment of the employer shared responsibility payment.
• Statute of Limitations on Penalty Assessment: The period of assessment expires at the end of the 6-year period after the due date of the return or the date such return was file, whichever is later.

The Employer Reporting Improvement Act is effective for returns due after December 31, 2024.