Employers can save time and money by distributing 1095 Forms by email. The IRS allows electronic distribution of 1095 Forms if the employee consents to receive the form by email. Electronic distribution saves employers the cost of postage and mitigates potential delays experienced by sending letters by U.S. mail. As HR tasks may be slower during the summer, now is a good time to collect email consents for electronic delivery.
Receiving an individual’s consent to receive an ACA form electronically requires the following:
- The recipient must affirmatively consent to receive the statement in the electronic format. The employee’s consent must be made in a manner that reasonably demonstrates that the recipient is able to access the form electronically. If the form is being sent by email or by logging onto a website, it is a good idea that they be made in the same manner (by email or by logging onto a website).
- The consent language should identify that it relates specifically to the 1095 Form.
- The consent language should identify a way to revoke the consent in the future.
- The recipient must be advised that a paper copy is available upon request.
- The language should include: a commitment to provide a paper copy if consent is not given; the scope and duration of consent; how to withdraw consent; how to get a paper copy after giving consent; the conditions under which an electronic copy will no longer be provided; how the recipient’s information will be updated; a list of the hardware and software required to access, print and save their statement; and the date the statement will no longer be available.
If you use BAS for ACA data collection and reporting services, BAS can easily set up your account for electronic distribution compliant with IRS requirements. For more information about 1095 Form e-delivery, contact your account manager or solutions@BASusa.com.