On December 23, 2024, President Biden signed into law two pieces of legislation intended to ease the burden on employers that need to submit information to the IRS and employees on health care coverage.
The Paperwork Burden Reduction Act allows employers to not furnish form 1095-B or 1095-C as long as proper notification is provided to the employees of their right to request a physical copy of their form. The employer must provide “clear, conspicuous, and accessible notice” that employees would need to request a physical copy of the form. The form would in turn need to be provided by January 31st or 30 days after the request.
The Employer Reporting Improvement Act changes social security number (SSN) / tax identification number (TIN) requirements and sets definite response times and limitation periods for IRS enforcement of Affordable Care Act (ACA) filing requirements. The employee’s full name and birth date can be used in lieu of a SSN or TIN if they are not available. This act also allows employers to provide an electronic copy to their employees, with the employees’ consent. This act allows for a 90-day response period for an employer IRS notice (226-J Letter), rather than the previous 30-day period. The response period for notices of assessment is starting with notices received in 2025. There is a six-year statute of limitations on collecting employer mandate penalties, where previously no statute of limitations was in place.
This new legislation only applies to the federal furnishing requirements. Employers subject to state reporting and furnishing requirements should continue to plan on providing the required forms unless state agency changes are announced.
See the formal legislations below:
Welcomed Changes to Affordable Care Act Information Reporting for 2025 | Smith Anderson - JDSupra
PFML contributions begin on July 1, 2025. This will be funded through employer and employee contributions. More information to come as it becomes available.
FAMLI – headcount reporting required by Feb 28, 2025
All employers with Colorado employees are required to update their employee headcount in My FAMLI+ Employer by February 28, 2025. This is a requirement for all employers with Colorado employees, even those that have been approved to use a private plan to meet their FAMLI obligations. The only exceptions are local government employers who have voted to opt out of the program. This will ensure that you are assigned the correct premium tax rate.
NEW this year: If your Annual Total Employee headcount is not updated by February 28, 2025, the FAMLI Division will assume you have 10 or more employees, and you’ll be required to send in 0.9% of wages each quarter in 2025.
The agency will not carry over your total headcount from the previous year.
Log in to your My FAMLI+ Employer account, and you will find the task on your dashboard. As a TPA, we cannot update this information on your behalf. The Annual Total Employees headcount needs to be completed by employers. Third party administrators are not able to complete this task on behalf of their clients or through bulk upload.
How to establish employee headcount: Your total headcount will be calculated by counting the number of employees you have on your payroll nationwide for a total of 20 or more calendar workweeks in the preceding calendar year.
Louisiana declared an Emergency Rule to adopt new income tax withholding tables and formulas that has taken effect on January 1, 2025. The new regulations replaced the graduated income tax brackets with a single 3% flat tax rate. The new formula also eliminates the need for personal exemptions and replaces it with increased standard deduction amounts for each taxpayer filing status:
Single/Married Filing Separate:
Married/Head of Household/Surviving Spouse:
Per the agency, employers should obtain new Forms L-4 from their employees to be used with the updated withholding.
The tables have been updated in ProLiant’s tax systems. The new form is also being loaded into our onboarding system. A copy of the new form will be linked here for your reference: Form L-4: 1300(1_25)F.pdf
Additional information regarding the emergency declaration can be found here: Notice Concerning Updated Withholding Tables Effective January 2025
ER_61.I.1501_Withholding Tables (Clean Copy).pdf