Final Reminder: Ensure On-Time ACA 1095 Distribution Before Midnight Today

Time flies, and so do compliance deadlines! If your business is required to complete ACA reporting, today—March 3, 2025—is a critical date to remember. The deadline for distributing recipient copies of Forms 1095-B and 1095-C has arrived. Missing this requirement can lead to penalties, so ensuring timely distribution is essential for ACA compliance.

This blog covers everything you need to know about the recipient copy deadline and how ACAwise helps streamline the ACA reporting process to keep your business compliant.

Understanding the 1095 Recipient Copy Deadline

Under the Affordable Care Act (ACA), Forms 1095-B and 1095-C are used to report health coverage details to individuals and the IRS. These forms must be distributed to employees and other recipients by March 3 to ensure compliance and avoid potential penalties.

Form 1095-B: Health Coverage Information

This form reports the minimum essential health coverage provided to individuals, fulfilling the ACA’s mandate. Employers offering self-funded health plans and insurance providers must send copies of Form 1095-B to covered individuals.

Form 1095-C: Employer-Provided Health Coverage

Applicable Large Employers (ALEs) with 50 or more full-time employees (or equivalents) must furnish Form 1095-C to report the health coverage offered to employees. Copies must be provided to employees as part of ACA compliance requirements.

ACA Penalties for Non-Compliance

Failing to meet ACA reporting deadlines can result in costly penalties. The penalty for failure to provide a correct recipient copy on or before the deadline is $330 per statement, with a total maximum penalty of $3,987,000 per calendar year. 

How ACAwise Helps Employers and Insurers Ensure ACA Compliance

Staying ahead of ACA requirements doesn’t have to be overwhelming. ACAwise, an IRS-authorized ACA full-service ACA reporting software, provides a streamlined approach to ACA compliance with two tailored services—ACA Core and ACA Elite.

• ACA Core Service: Designed for employers who have already generated the necessary ACA codes, the ACA Core service facilitates the generation and e-filing of Forms 1094 and 1095-B/C with the IRS and applicable state agencies.
  
  
• ACA Elite Service: For employers seeking comprehensive support, the ACA Elite service goes a step further by generating the required ACA codes based on the employee data provided. This full-service solution includes data handling, form preparation, code generation, and e-filing with the IRS and state agencies, ensuring end-to-end compliance.

Additional Features of ACAwise Services

In addition to federal and state filing, you can also opt for the following additional services to meet your ACA compliance requirements.

• Employee Copy Distribution: ACAwise offers both postal mailing and secure online access options for distributing 1095 forms to employees, ensuring timely and compliant delivery.
  
  
• State-Only Filing: ACAwise supports state-only ACA filing for businesses required to report health coverage at the state level, even if they do not file federally.
• Data Validations: ACAwise performs thorough data validations against IRS business rules and XML schemas, Data Integrity Checks, TIN Matching, and USPS Validation, reducing errors and ensuring accurate reporting.

Stay ACA-Compliant with ACAwise

Meeting ACA deadlines doesn’t have to be stressful. With ACAwise’s ACA Core and ACA Elite services, you have flexible options to simplify ACA reporting and ensure compliance with IRS and recipient copy requirements.

Don’t leave compliance to chance—get started with ACAwise today and file with confidence!