ACA Forms › Essential Information for Employers about ACA Penalties 2025
The Affordable Care Act (ACA) mandates that all employers and insurance providers meet annual ACA reporting obligations. Thus, any entity offering Minimum Essential Coverage (MEC) to an individual must report this information.
Please click here to learn more about the various types of IRS ACA penalties and their corresponding fines.
Form 1095-B is an information return filed by health insurance providers or employers offering self-funded coverage with fewer than 50 full-time + full-time equivalent employees.
For more info on Tax Year 2024 Form 1095-B, click here.
Form 1095-C is an information return filed by employers with at least 50 full-time + full-time equivalent employees. These employers are known as 'Applicable Large Employers' or ALEs by the IRS. This form tells the IRS if the employer met ACA guidelines for the healthcare coverage they offer, and it requires that employees receive a recipient copy.
For more info on Tax Year 2024 Form 1095-C, click here
We also recommend checking out the IRS.gov ACA FAQ, which contains many common 1095-C questions in an easy-to-understand format.
Purchasing any BoomTax package will give you everything you need to complete your filing.
This includes:
Import many companies in one spreadsheet to simplify data input.
We validate your data against hundreds of IRS rules.
No IRS registration or testing required.
Make as many changes as needed for free.
Employers can incur ACA penalties and receive letter 226J from the IRS due to the following circumstances:
The IRS determines ACA penalties based on various factors, including missing the deadline, providing incorrect information, or using paper forms when electronic filing is required.
The IRS has increased the penalty amounts for the 2024 filing year.
$310 per form
up to$1,261,000 per year (smaller businesses)
$3,783,000 per year
$310 per form
up to$1,261,000 per year (smaller businesses)
$3,783,000 per year
$630 per form
no maximum penalty
To prevent unnecessary penalties from the IRS, start with BoomTax now and electronically file your Form 1095-C and 1095-B. BoomTax will automatically generate your 1094-C or 1095-B if you e-file form 1095-B or 1095-C with us.
Receiving penalties from the IRS can be daunting. Here’s how you can protect yourself from such risks:
Generally, ACA filing is handled by self-filing or by using an ACA Software provider:
Learn more about filing ACA Forms online.
If you can't file ACA Form 1095-B or 1095-C on time, you can request an automatic, 30-day extension by filing Form 8809
OR by requesting a time extension directly from BoomTax.
Learn to request an ACA Form extension or check out our extensive deadlines.
BoomTax will streamline your ACA filing process in 3 simple steps!
You can import your data as Excel, XML, or use files from popular payroll providers like QuickBooks, UKG, ADP, and many more.
We walk you through the process with no complicated jargon. You can also live chat with a real person as you work on your filing for hands-on help.
Once your data is loaded, you can e-file and distribute employee copies in minutes.
BoomTax and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors prior to engaging in any transaction.
