Congress Passes Two Bills Designed to Reduce ACA Administrative Burdens for Employers

The Paperwork Reduction Act is designed to reduce employers' burdens by amending the ACA to eliminate the requirement that employers and health insurance providers send tax forms to the covered individuals under their health insurance plans. Under prior law, employers and insurance providers were required to send Forms 1095-B and/or 1095-C to each covered individual to offer proof about minimum essential health coverage. Under the new law, these forms are only required to be sent when the covered individual specifically requests them. When the individual does request a form, that form has to be provided by the later of January 31 or 30 days from the date of the request. Employers are also required to notify covered individuals about their right to request a form. A second law, called the Employer Reporting Improvement Act, extends the time period that employers have to respond to 226-J letters that notify employers about shared responsibility penalties to 90 days (previously, employers only had 30 days to respond). President Biden is expected to sign both bills into law. For more information on the employer shared responsibility penalty, visit Tax Facts Online. Read More: Link to Q8875.