Employers should strongly consider delivering Forms 1095 to their workforce electronically instead of through the U.S. Postal mail.
The IRS allows 1095 Forms to be sent by email if the employee consents to receive the form electronically. Electronic distribution saves employers the cost of postage and mitigates potential delays with sending letters by U.S. mail. It ensures security if the form is sent in an email with an individual, secure link. This approach makes sure the intended recipient receives the proper form.
Getting consent to send the ACA form is easy and 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 the 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.
Employers wishing to distribute Form 1095-B/C electronically should make sure to comply with the IRS’ electronic distribution rules. If you use BAS for ACA data collection and reporting services, BAS can quickly 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.