Sep 30, 2024
2025 Deadlines and Penalties Under the Affordable Care Act
This information provides the deadlines for 2024 calendar year reporting, due in 2025, under the Affordable Care Act (ACA) as well as the penalties for failing to offer the appropriate and affordable coverage or for failing to file information to individuals and the IRS by the deadlines.
Deadlines to Furnish 1095 Statements to Employees
- March 3, 2025 for 2024 calendar year information. (30 days as of January 31, 2025 however March 2, 2025 is a Sunday).
Deadlines to Furnish 1094/1095 Information to the IRS
- Paper IRS Return Filing Deadline is February 28, 2025
- Electronic IRS Return Filing Deadline is March 31, 2025
4980H Employer Shared Responsibility Penalties
The IRS released Rev. Proc. 2024-14 to provide the adjusted excise tax amounts under the Affordable Care Act’s Employer Shared Responsibility provisions (also known as the ACA Pay or Play Penalty) for 2025.
The adjusted penalty amount for failures occurring in the 2025 calendar year will be:
| Code | 2025 | 2024 |
|---|---|---|
| 4980H(a) | $2,900 (decrease of $70) | $2,970 |
| 4980H(b) | $4,350 (decrease of $110) | $4,460 |
- $2,900 under Code §4980H(a) per full-time employee (less the 30-employee reduction), and
- $4,350 under Code §4980H(b) per full-time employee that receives subsidized coverage through an Exchange.
Current and previous ACA Penalty Amounts are also available on the IRS Question and Answer page (Question #55)
Code §4980H(a) – ALEs must offer minimum essential coverage (MEC) to at least 95% (or all but 5, if greater) of full-time employees and their dependent children each month. An offer of coverage is not required for spouses.
Code §4980H(b) – ALEs must offer coverage that provides minimum value AND is affordable to all full-time employees each month. There is not a 5% “margin of error” for §4980H(b) requirements like there is under §4980H(a).
Amwins Connect Guide to 4980H Requirements and Penalties
Penalties for Failing to File or Distribute 1095s
The penalties for untimely or inaccurate filing and/or furnishing of 1094-C/1095-C (amounts adjusted annually) are:
| Year ACA Returns Due to be Filed/Furnished | Not more than 30 days late | 31 days late until August 1 | After August 1 |
|---|---|---|---|
| 2025 | $60 per return or statement | $130 per return or statement | $330 per return or statement |
| 2024 | $60 per return or statement | $120 per return or statement | $310 per return or statement |
While every effort has been taken in compiling this information to ensure that its contents are totally accurate, neither the publisher nor the author can accept liability for any inaccuracies or changed circumstances of any information herein or for the consequences of any reliance placed upon it. This publication is distributed on the understanding that the publisher is not engaged in rendering legal, accounting, or other professional advice or services. Readers should always seek professional advice before entering into any commitments.
