February 2024 Benefits Buzz: ACA Reporting Deadlines 2024 + More!

Approaching ACA reporting deadlines for 2024

Employers subject to Affordable Care Act reporting under Internal Revenue Code Sections 6055 or 6056 should prepare to comply with the upcoming ACA 2024 reporting deadlines. For the 2023 calendar year, covered employers must:

furnish paper statements to individuals by March 1, 2024; and
file paper returns with the IRS by Feb. 28, or April 1 if filing electronically. Beginning in 2024, employers who file at least 10 returns during the calendar year must file electronically.

Penalties may apply if employers are subject to ACA reporting and fail to file returns and furnish statements by the applicable deadlines.

The following employers are subject to ACA reporting under Sections 6055 and 6056:

employers with self-insured health plans (Section 6055 reporting); and
applicable large employers with either fully insured or self-insured health plans (Section 6056 reporting).

ALEs are employers with 50 or more full-time employees (including full-time equivalent employees) during the preceding calendar year. Note that ALEs with self-insured plans must comply with both reporting obligations. However, to simplify the reporting process, the IRS allows ALEs with self-insured plans to use a single combined form to report the information required under both Sections 6055 and 6056.

You can learn more about the upcoming ACA reporting requirements in our January 2024 issue of Benefits Buzz, Group Health Plans and ACA Reporting. Also, explore how the 2024 ACA pay or play penalty will increase.

DOL increases civil penalty amounts for 2024

On Jan. 11, the U.S. Department of Labor published the 2024 inflation-adjusted civil monetary penalties that may be assessed for a wide range of employee benefit-related violations.

To maintain their deterrent effect, DOL is required to adjust these penalties for inflation by Jan. 15 of each year. Key penalty increases include:

Summary of Benefits and Coverage: Failure to provide group health plan participants and beneficiaries with an SBC may now result in a penalty of up to $1,406 per participant or beneficiary.
Form 5500 filings: Failure to file an annual Form 5500 with DOL can now result in a penalty of up to $2,670 per day.
Children’s Health Insurance Program notice: Failure to provide the annual notice regarding CHIP coverage opportunities may now result in a penalty of up to $141 per day (each employee is a separate violation).
401(k) disclosures: Failure to provide blackout notices and notice of the right to divest employer securities may now result in penalties of up to $169 per day.
DOL-requested plan information: Failure to provide plan-related information requested by DOL can now result in penalties of up to $190 per day, but not to exceed $1,906 per request.

Have questions? Reach out to TruePlan

If you have questions about the ACA requirements or DOL penalties, reach out to TruePlan today. We’re more than happy to go in-depth on these topics and explore your current employee benefits offerings.

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