Prepare for the ACA in 2025: Don’t Let Compliance Fall Through the Cracks! 

As the autumn leaves fall and the days get shorter, human resources and benefits professionals are preparing for the ACA compliance deadlines season. While the deadline is not until February 28, 2025, human resources professionals will need to start reviewing data within the benefits administration system to ensure that the correct information was properly captured for calendar year 2024. Missing deadlines could leave businesses exposed to costly consequences.

The Risks of Missing ACA Deadlines in 2025

For the calendar year 2024, ACA forms must be filed by:

• February 28, 2025 (if filing on paper)
• March 31, 2025 (if filing electronically)
• Additionally, an Applicable Large Employer (ALE) must provide a Form 1095-C to each full-time employee by March 3, 2025, for the 2024 calendar year. 

The Cost of IRS Penalties for Plan Year 2024

Failing to meet the information reporting requirements for Forms 1094-C and 1095-C can result in the following penalties:

• Failure to File a Correct Information Return: The penalty is $330 for each return with errors, with a maximum penalty of $3,987,000 per calendar year.
• Failure to Provide a Correct Payee Statement: Similarly, the penalty is $330 per incorrect statement, with a maximum annual cap of $3,987,000.
• Intentional Disregard: Special rules apply that increase the per-statement and total penalties if there is intentional disregard of the requirement to file the returns and give the required statements.
• Penalties may be waived: If failures are due to reasonable cause and not willful neglect. For more information, see IRS sections 6724, 301.6724-1, and 1.6055-1(h). 

How to Avoid Falling Short of ACA Compliance in 2025 

With the consequences of missing ACA deadlines laid out, here are some practical ways to ensure your business remains compliant: 

Don’t Let Compliance Deadlines Fall Through the Cracks 

Establish a clear ACA reporting calendar with reminders for all key dates, including deadlines for providing forms to employees. An automated calendar can help you stay on top of every detail. 

Automate Your Processes 

Consider a benefits administration platform to automate ACA tracking, reporting, and form submission. Automation can reduce the risk of errors and prevent the stress of manual reporting. 

Conduct Regular Data Audits 

Schedule regular audits of employee data to ensure accuracy in reporting. Tracking hours worked, employee eligibility, and coverage details can prevent discrepancies when submitting forms. 

Stay Ahead of ACA Deadlines 

Missing ACA deadlines in 2025 could lead to costly penalties, IRS audits, and potential harm to your company’s reputation. By staying organized, regularly checking your data, and automating processes where possible, your business can successfully meet compliance requirements without the risk of falling behind. Embrace the opportunity to plan and prepare early, so you can enjoy the peace of mind that comes with thorough and timely compliance. 

Need help getting organized? Check out ComplianceDashboard‘s proactive calendaring and tracking system for employee benefits compliance!