Which employers will be required to complete ACA reporting electronically in 2024?

Beginning January 1, 2024, virtually all employers will be required to file ACA reporting Forms 1094-B/1095-B and 1094-C/1095-C electronically. On February 21, 2023, the IRS published final regulations to the Taxpayer First Act of 2019, significantly expanding the e-filing mandate for certain tax returns.

Specifically, Forms 1094-B/1095-B and 1094-C/1095-C must be filed electronically if the total number of information returns (including Forms W-2 and 1099s) an employer files that year exceeds 10. As a result, all applicable large employers (ALEs) and most non-ALE self-insured employers completing ACA reporting will be required to do so electronically. If an employer demonstrates undue hardship, such as increased filing costs, the IRS may waive the e-filing requirement. Applications for an e-filing waiver are made via Form 8508.

Employers currently completing ACA reporting via paper mailing should consult with their tax advisor on e-filing requirements in 2024, discuss any potential undue hardship waiver and, if required, prepare to complete ACA reporting electronically. While employers may use third-party vendors to e-file on their behalf, they remain liable for any reporting failures.

For further information regarding the upcoming filing changes, please also see our February 28, 2023, article.