As an employer, it’s crucial to stay on top of regulatory changes when it comes to employee benefits and healthcare administration. Recently, level-funded groups have faced a new challenge regarding filing requirements for Form 1095-B. These groups are treated as self-funded in the eyes of ERISA, adding a layer of complexity to their administration.
The IRS is enforcing more stringent electronic filing provisions commencing for filings due in 2024 (2023 tax year). This means that even small employers with 10 or more forms to file under Revenue Procedure 6721 must file them electronically. This includes forms 1094-B and 1095-B. This is a sharp decline from the previous threshold of 250 forms. While applicable large employers are generally aware of the new electronic filing requirements for forms 1094-C and 1095-C, smaller employers with level-funded plans may not be aware when filing Forms 1094-B and 1095-B. Employers in this situation who do not have the capability to file electronically should do the following:
- Complete IRS Form 8508, indicating a waiver request for 1095-B filing.
- Check "no" in Box 7 (as this is not for corrections only).
- If it's your first time requesting electronic filing for any listed forms, check "yes" in Box 8.
- Skip to the signature line.
- Fax the completed form to the IRS at 1-877-477-0572 by February 28, 2024. However, the sooner, the better.
Alternative Filing Method
In case faxing is not possible, you can mail the completed Form 8508 to the following address:
Internal Revenue Service
Attn: Extension of Time Coordinator
240 Murall Drive Mail Stop 4360
Kearneysville, WV 25430
Make sure to request a return receipt for mailed submissions. This same process applies to large employers still mailing Form 1095-C this year, with under 250 forms to file.
It's important to note that this requirement only applies to this year. Next year, additional supporting documentation may be necessary to justify a hardship waiver.
Staying compliant with IRS regulations is crucial for all employers, especially when it comes to healthcare reporting. By understanding and adhering to the new electronic filing requirements for Form 1095-B, level-funded groups can confidently navigate this regulatory landscape. Timely compliance ensures smooth operations and avoids potential penalties down the road. And remember, Medcom is always here to help! If you have questions or want to see how we can help with your compliance or ACA needs, contact us.
(Revised: February 9, 2024)
