IRS Gives Green Light on New Forms 1095-B and 1095-C Rules
What HR Professionals and Insurance Brokers Need to Know About Notice 2025-15
The IRS recently released Notice 2025-15, clarifying how employers may comply with the new requirements for furnishing Forms 1095-B and 1095-C, Employer-Provided Health Insurance Offer and Coverage, by using the alternative method as allowed (e.g. posting the notice to the employer’s website) in the Paperwork Burden Reduction Act. Here’s what you need to know.
Remember:
- Form 1095-B – Individuals who have health coverage outside of the Marketplace will get this form (except for employees of applicable large employers that provide self-insured coverage, who will receive Form 1095-C instead).
- Form 1095-C – Individuals who work full-time for applicable large employers will get this form. Also, part-time employees will get this form if they enroll in self-insured coverage provided by an applicable large employer.
The Change in ACA Reporting
The headline: Employers are no longer automatically required to send Forms 1095-B and 1095-C to all full-time employees and covered individuals. Instead, employers can post a notice on their company website explaining how employees can request the appropriate form.
But don’t skip the details—there are conditions to stay compliant.
How to Post a Compliant Notice
Switching from mailing forms to posting a notice online? Here’s what the IRS requires:
- Make It Easy to Find
The notice should be in a location on its website that is reasonably accessible to all responsible individuals, with information on how individuals may request a copy of their respective form upon request. The notice should be accessible to all current employees, COBRA participants, and retirees. No hidden links!
- Include Contact Info
Provide your email, physical address, and phone number for employees to request their respective form or ask questions.
- Keep It Clear
Use simple language and a readable format—no tiny fonts or jargon.
- Post It On Time
The posted notice must be available by the due date for furnishing the statement, including the automatic 30-day extension (e.g., for 2024 statements, the notice must be posted by March 3, 2025).
Keep It Online
The notice needs to stay up through October 15, 2025, for 2024 forms.
What This Means for You
Switching to website notices saves time and money but comes with some reminders:
- State Rules Differ
Federal changes don’t override state laws. Reporting guidelines for California and the District of Columbia may suggest that complying with the IRS requirement to furnish the respective form would satisfy the respective state’s requirements. However, the New Jersey and Rhode Island guidance refers to providing a written statement and does not specify that complying with the federal furnishing satisfies the state furnishing requirement. Check with your employee benefits attorney to ensure that if you operate in a state that requires furnishing the respective form that you do it compliantly.
- Clear Communication is Key
Keep your messaging simple to avoid confusion and questions from employees. The notice must be in plain, non-technical terms and visually clear.
Pro Tip: If you have an administrator assisting with these forms, ensure that you coordinate distribution well in advance of any deadlines.
Background
The Paperwork Burden Reduction Act (H.R. 3797) amended IRC Sections 6055(c) and 6056(c) to allow an alternative method of furnishing Forms 1095-B and 1095-C (see “New Requirements for ACA Forms 1095-B and 1095-C”). Under this Act, reporting entities are not required to send forms to individuals so long as the entity posts a notice prominently on their website that individuals may receive their respective form upon request. If requested by the participant, their form must be furnished by the earlier of (1) January 31 of the year following the calendar year for which the return was required to be made or (2) 30 days after the request. The posted notice must be available by the due date for furnishing the statement, which for 2024 is March 3, 2025.
Final Thoughts
This change is a great opportunity to streamline ACA reporting while staying compliant. Plan ahead, communicate clearly, and you’ll be ready.
Have questions? Don’t stress—we’re here to help. Stay compliant, keep your employees informed, and let this update work to your advantage!
