2024 Tax Year Forms and Instructions
Hello again,
This post is for Applicable Large Employers (ALEs) required to comply with the Affordable Care Act. We hope you find it useful.
When tracking data year-round and filing, it’s important to keep in mind the following calculations in order to remain compliant:
– Applicable Large Employers (ALEs) with 50+ or more full-time employes, or full-time equivalents, must offer Minimum Essential Coverage to at least 95% of qualifying employees and their dependents.
– If a qualifying employee is not offered appropriate coverage and signs up for health insurance on the Health Insurance Marketplace, your company may be liable for steep penalties.
– ALEs must accurately calculate and report the number of full-time employees (and equivalents) employed during a calendar year. Accurate tracking can be difficult for businesses employing temporary, part-time, or seasonal workers.
– Tracking may be challenging for companies with multiple EINs and businesses that operate in more than one state. Restaurants and food service businesses may employ workers with varying hours and rates of pay for multiple roles.
Passport Software’s affordable IRS-certified ACA software and services can help your company simplify the entire compliance management process year-round to avoid costly penalties.
2024 Tax Year Forms
Tax Year 2024/filing year 2025 brings only minor changes for Affordable Care Act reporting.
The IRS has published the official 2024 tax year ACA forms and instructions. Forms 1094-B and 1095-B are filed by health insurers and companies with self-insured health plans, and 1094-C and 1095-C are filed by ALEs and are used to determine whether a company owes an ESRP payment (under section 4980H).
The new forms are the same as 2023 tax year forms, but the B form instructions include clarification about reporting penalties. The C form instructions relay the affordability safe harbor and qualifying offer method, using the affordability threshold percentage adjustment of 8.39% for 2024.
The Affordability threshold increases to 9.02% for the 2025 tax year. This threshold is the maximum percentage of an employee’s income (as calculated by one of the three Safe Harbors) that can be considered affordable. These premiums are based on what the employee could have paid for the least expensive self-only plan available – not what they are actually paying for a higher end plan or whole family coverage.
Forms 1094 -B and 1094-C filing deadlines are February 28, 2025 (paper filing), or March 31, 2025 for electronic filing. ALEs may use Form 8809 to request an extension. The deadline for furnishing to employees is March 3, 2025. Filers with 10+ returns must file electronically. The return count aggregates almost all information return types, including W2s and 1099s.
The AATS (ACA testing environment) reopens November 1st, now with TY 2024 considered the “current” year. Any files for TY 2023 or older would require the prior year indicator. The Production (live) environment is still open, though TY 2023 is still considered the “current” year until the IRS is ready to accept TY 2024.
Passport Software
We help our ACA customers simplify filing and the entire compliance management process year-round. Our friendly experts can walk you through the entire process and answer any ACA-related questions you may have. We can help you with data tracking, furnishing, preparation, and filing – all in a timely and accurate manner to avoid costly penalties.
Passport Software’s affordable IRS-certified ACA software and services help ensure compliance year-round, so if you are doing most of the work on behalf of an expensive, outsourced vendor or payroll service, we can help.
– Our ACA software streamlines data management year-round to help maintain compliance and avoid costly penalties on behalf of your clients.
– The software alerts when an offer of coverage will be needed, and it helps ensure that coverage falls within the affordable range based on IRS criteria.
– Track employees adding coverage, status changes, and contributions going up or down.
– Our comprehensive software also consolidates an employee’s hours across multiple companies, and it handles the complex reporting rules affected by common ownership.
The Full Service option is even easier – just provide a spreadsheet with employee data and we do the rest, including filing.
We also provide penalty response consultation services and have helped many companies avoid or drastically reduce penalties.
To learn more about how our ACA software and services can ease the burden of compliance, call 800-969-7900. Or, contact us – we are here to help.