Last December, the Paperwork Burden Reduction Act was signed into law allowing employers to meet Form 1095 distribution requirements for 2024 and future reporting years by posting a notice of availability and then only distributing upon request. Then the IRS released Notice 2025-15 providing further details on how to satisfy the notice requirement.
NOTE: For employers subject to state-level reporting requirements in CA, MA, NJ, RI or DC, this distribution option for Form 1095s may not be available.
Background - ACA Employer Reporting Responsibilities
All applicable large employers (ALEs) – 50 or more full-time equivalents (FTEs) - are required to report on offers of coverage to full-time employees. ALEs report offer of coverage information using Forms 1094-C and 1095-C. In addition, any size employer who provided level-funded or self-funded group health plan coverage must report coverage information for all individuals enrolled in the plan, including employees, non-employees (e.g., owners, retirees, COBRA participants), and their spouses and dependents. Small employers (<50 FTEs, non-ALEs) report this coverage information using Forms 1094-B and 1095-B. ALEs generally report this coverage information in Part III of Form 1095-C.
Form 1095s must be distributed to full-time employees and individuals covered under a self-funded plan by March 2nd. Form 1094 and all Form 1095s must be filed electronically with the IRS by March 31st. Failure to timely distribute or report complete, accurate information can result in penalties up to $340/form.
Distribution of Form 1095s
The IRS instructions indicate Form 1095s must be distributed to full-time employees and covered individuals by March 2nd. The options for distribution of Form 1095s are: (i) hand delivery; (ii) mail; (iii) electronically if individuals consent to electronic delivery; or (iv) NEW - post a notice of availability and then only deliver if requested (see more detail below).
Alternative Manner of Furnishing – Posting Notice of Availability
For purposes of both §§6055 and 6056 (both the “B” and “C” Form 1095s), rather than having to mail a copy or provide it electronically to all full-time employees and covered individuals, the
distribution requirement for Form 1095s can be satisfied by providing a “clear, conspicuous and accessible notice” that the forms are available within 30 days of request. Previously this was possible for Form 1095-Bs, but not for Form 1095-Cs.
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, an intranet, benefits portal or payroll portal that is only available to current employees is unlikely to work. The employer’s public-facing website is best.
-
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.
-
-
The notice must be posted by March 2nd and remain in the same location on the website through October 15th.
-
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, it must be provided within 30 days and would have to be hand delivered or mailed unless the requesting individual consents to receiving the Form 1095 electronically.
Unison Risk Advisors Compliance Team | benefitscompliance@unisonriskadvisors.com
Disclaimer: Materials are solely for informational purposes as an educational resource. Please contact counsel to obtain advice with respect to any specific issue.
