As we reported at the beginning of the year, the Paperwork Burden Reduction Act was signed into law allowing employers to meet Form 1095 distribution requirements for the 2024 reporting year by posting a notice of availability and then only distributing upon request. On February 21, 2025, the IRS released Notice 2025-15 providing further detail on how to satisfy the notice requirement and confirming that such notice must be posted by March 3, 2025 for the 2024 reporting year.
If you still choose to distribute the 1095 forms to all employees, those must be delivered by March 3, 2025.
Form 1094 along with all Form 1095s must be submitted electronically to the IRS by March 31, 2025.
Failure to timely distribute or report complete, accurate information can result in penalties up to $330/form.
Alternative Manner of Furnishing – Posting Notice of Availability
If you choose to post the notice instead of delivering the 1095 forms, please follow the requirements just released by the IRS and use the Sample Notice provided at the end of this Alert. The notice requirements are as follows:
A clear and conspicuous notice must be posted on a website that is reasonably accessible to all possible Form 1095 recipients (i.e., full-time employees and individuals covered under the employer’s level-funded or self-funded plan, if applicable). Therefore, a benefits portal or payroll portal that is only available to current employees is unlikely to work. The employer’s public-facing website is probably more appropriate.
A statement reading “Tax Information” on the website’s main page in an appropriate font-size along with visual clues or graphics to draw attention could then lead to a secondary page including the actual notice.
For the 2024 reporting year, the notice must be posted by March 3, 2025 and remain in the same location on the website through October 15, 2025.
The notice must include an email address, physical address, and telephone number that can be used to request a copy of Form 1095.
If after posting notice of availability the employer receives a request for a Form 1095, the Form 1095 must be provided within 30 days and would have to be hand delivered or mailed unless the employer obtains specific consent from the individual to provide the Form 1095 electronically.
Sample NoticeA model notice has not been made available, but something like the following may be appropriate:
IMPORTANT HEALTH COVERAGE TAX DOCUMENTS
The 2024 Form 1095s are prepared and available upon request. The Form 1095s provide information about offers of coverage made to full-time employees [if your plan is self-funded, also include: “as well as coverage information for those who enrolled in ABC Company’s group health plan”]. To request a copy of your Form 1095 or for further information about Form 1095s, you can reach out to [include contact name or department] via [must include an email address, physical mailing address, AND telephone number]. |
If you have any questions about your reporting or posting responsibilities, please contact your Cottingham & Butler service team today.