This week, the House of Representatives and Senate passed several long-overdue pieces of legislation relieving much of the burden of Affordable Care Act (ACA) compliance for applicable businesses. AGC has advocated for employer reporting reform ever since the ACA was enacted and eagerly anticipates President Biden signing the legislation into law. The two bills that passed include:
Employer reporting reform (H.R. 3801/S. 3204) provides additional time (90 days) for employers to respond to a preliminary penalty assessment under the ACA. It also provides for a six-year statute of limitations on penalty assessments, which will help ease employer record keeping. The bill also provides for flexibility in identifying dependent taxpayer identification numbers (TINs) where that information is not available by substituting the full name and date of birth. It also provides for electronic delivery of statements relating to health insurance coverage where the individual consents to electronic delivery.
Paperwork burden reduction (H.R. 3797/S. 3202) provides for alternative methods of reporting coverage under Sections 6055(c) and 6056(c) of the Internal Revenue Code. These ACA reports to covered individuals relating to employer-provided coverage for purposes of the largely repealed individual mandate are otherwise required to be physically mailed to employees and dependents. The bill would make these reports readily available on demand to employees and dependents, saving time, the expense of mailing, and the waste of paper.
For more information, contact Jim Young or Claiborne Guy.