At the close of 2024, Congress passed two new pieces of legislation: the Paperwork Burden Reduction Act and the Employer Reporting Improvement Act. These laws simplify the Affordable Care Act (ACA) reporting requirements for employers and introduce new limits on the IRS’s authority to enforce “pay-or-play” penalties, among other changes.
Under the ACA, applicable large employers (ALEs) and non-ALEs with self-insured health plans must report to the IRS regarding the health plan coverage they offer (or don’t offer) to their employees. Additionally, they must provide individual statements about their health plan coverage.
Previously, ALEs were required to send a health coverage statement (Form 1095-C) to each full-time employee within 30 days of January 31 each year. The IRS allowed non-ALEs with self-insured plans to provide health coverage statements (Forms 1095-B) to covered individuals only upon request. Starting in 2025, ALEs will have the same flexibility as non-ALEs to provide Forms 1095-C upon request.
As a result, employers are no longer obligated to send Forms 1095-C or 1095-B to individuals unless specifically requested. Employers must inform individuals about this option in compliance with any IRS guidelines. Requests for forms must be fulfilled by January 31 of the year following the calendar year to which the return pertains, or within 30 days of the request, whichever is later. These forms may be sent electronically to individuals who have previously consented.
Although the new laws offer reporting flexibility, ALEs and non-ALEs with self-insured plans are still required to submit ACA returns to the IRS. The deadline for electronic filing is March 31, 2025.
Additionally, ALEs may face IRS penalties if they fail to offer affordable minimum essential coverage under the ACA’s employer shared responsibility (pay-or-play) rules. The new legislation extends the time ALEs have to respond to IRS penalty assessment warning letters from 30 days to 90 days. It also establishes a six-year limit on the IRS’s ability to collect penalty assessments.
Conscious unbossing is the latest phrase to enter the workplace lexicon. It sits somewhere between quiet quitting and bare minimum mondays in the proverbial dictionary being written by Generation Z workers on the screens of social media.
Better known as Gen Z, this generation was born between 1997 and 2012. They began entering the workforce around 2020. Having grown up amid the Great Recession and the pandemic, they are cynical and it is coloring their view of work. Perhaps, the most telling trend to date is conscious unbossing or the practice of avoiding management roles.
More than half of Gen Z workers surveyed by Robert Walters said they don’t want to be middle managers. In other words, they prefer conscious unbossing. Clearly, Gen Z workers are shunning traditional career paths and norms that society has accepted for ages.
The Rise of Conscious Unbossing
Workers from the Baby Boomer and Gen X generations might not understand conscious unbossing. Why wouldn’t a professional want to be promoted and gain all the benefits of this achievement? After all, moving into management usually means a better title, higher salary, and sometimes even perks. It’s puzzling to those who paid dues, shot up the ladder, and aimed for these roles as they reached for the top.
However, the same Robert Walters survey showed that 69% of Gen Z say middle management is too high stress, low reward. While 36% of those surveyed said they expect they will have to eventually become a manager, 16% said they were adamant that they will avoid middle management all together.
Why Avoid Promotion?
To understand why so many people responded to say they did not want to become managers, one must look at the priorities of Gen Z. As inflation rose, employees’ wages remained stagnant, but the burdens of their jobs intensified. Previous surveys have indicated that young workers prize wellness and work-life balance. Many outlets have reported that more than 70% of Gen Z prioritizes work-life balance. In the last year, Forbes reported that Gen Z takes more sick days than older generations.
The small salary increases don’t seem to add up enough for Gen Z workers to take on middle management roles because they see them as disrupting their mental wellness. The additional stress is not worth the monetary reward or prestige. Instead, the Robert Walters survey showed that young workers are more interested in developing their own professional skills and carving their own path rather than traditional promotions.
How Employers Should Rethink Their Organizations
With conscious unbossing becoming more popular, business structures might not withstand time.
“Mid-management has been the glue that holds the organizational book together for decades, acting as the bond between senior management and individual contributors,” according to Forbes. “However, if those same senior leaders don’t pay attention to Gen Z’s views on leadership, there will be a talent and succession plan crisis in the years ahead.”
Some have suggested shifting to organizational structures that can be called flat or horizontal because they will not have traditional managers. Instead, people will work collaboratively. People will still lead but unencumbered by titles and supervisory duties. A few companies might already be experimenting. About 30% of cuts at Meta and Citigroup were to middle management.
While Gen Z is pushing the envelope and forcing older generations to reconsider their preconceived beliefs about work, one in four hiring managers said graduates were unprepared for entry-level roles. They cited poor work ethic, lack of professionalism, and insufficient interview skills. Indeed, 12% of hiring managers said they intended to avoid hiring recent graduates all together in 2025.
The truth is, however, Gen Z will be in charge eventually. Their ideas about work will likely get incorporated into the next generation workplace. Then, these social media-adapted catchphrases like conscious unbossing may become the norm.
Most organizations treat employee benefits like a seasonal event. Open enrollment brings a flurry of activity – emails, seminars, and even benefits fairs. However, communication often dwindles after this initial push, leaving employees confused and underutilizing their valuable benefits.
This is a missed opportunity. Research shows that employees crave more benefits education, spending hours researching their options. By proactively engaging employees throughout the year, organizations can:
Improve Employee Understanding: Ongoing communication helps employees retain information and make informed decisions, rather than relying solely on a single, overwhelming open enrollment period.
Reduce Confusion & Mistakes: Employees often make costly mistakes, such as under-saving for healthcare expenses or failing to utilize valuable benefits like employee assistance programs. Consistent communication can help them avoid these pitfalls.
Boost Benefits Utilization: Regular reminders encourage employees to actively use their benefits, such as gym memberships, financial counseling, or legal services, leading to improved well-being and reduced stress.
Enhance Employee Engagement: When employees understand and utilize their benefits, they experience increased job satisfaction, reduced stress levels, and improved overall well-being, leading to higher productivity and retention rates.
Gain Valuable Insights: Year-round communication allows HR teams to gather valuable data through employee surveys and feedback, enabling them to refine their communication strategies and better address employee needs.
Building a Successful Communication Plan
Two primary approaches can guide your communication strategy:
Calendar-Based: This traditional approach focuses on pre-determined themes for each quarter or month, aligning with seasonal trends and employee needs. For example, Q1 might focus on retirement planning, Q2 on health and wellness, Q3 on family-related benefits, and Q4 is Open Enrollment season.
Action-Based: This more modern approach triggers communication-based on employee actions, such as when they file a claim or contribute to their Health Savings Account (HSA). This ensures communication is most relevant when employees are actively engaged with their benefits.
Key Considerations:
Go Beyond the Booklet: Get creative with your content! Repurpose your open benefits booklet and enrollment presentations into a variety of formats. Utilize diverse communication channels, such as emails, podcasts, newsletters, intranet resources, text messages, and interactive online tools to make information easily accessible.
Focus on Employee Needs: Tailor your communication to address specific employee concerns and questions, such as how to reduce healthcare costs or plan for retirement.
Measure and Refine: You can’t manage what you can’t measure. Be sure to track the effectiveness of your communication efforts through surveys, employee feedback, and utilization data. Use these insights to refine your strategy and improve employee engagement.
Benefits education is communicating information about available benefits in ways that employees can connect to and understand. Communicating benefits information year-round is important because employees’ lives – and their situations – are constantly changing. They get married, divorced, adopt a child or have medical challenges arise.
If employees are engaged with their benefits throughout the year, they are more likely to value and use their benefits and will be better informed about their decisions and/or changes they need to make during the next Open Enrollment period!
February is American Heart Month, a time to raise awareness about cardiovascular health and how to keep your heart in top condition. Are you taking steps to protect your heart? You can actively reduce your risk for heart disease by adopting a healthy diet, staying physically active, and managing your cholesterol and blood pressure.
Heart disease is responsible for nearly one-third of all deaths worldwide. Experts and research consistently emphasize exercise as a key factor in maintaining heart health, but diet also plays a major role in lowering the risk of heart disease. A balanced diet, mindful portion sizes, and enjoying the foods you eat are essential to long-term success in heart health.
Let’s take a closer look at four key components of a heart-healthy diet and how you can incorporate them into your daily routine:
1. Fruits and Vegetables
Leafy greens are packed with vitamins, minerals, and antioxidants that support heart health. A review of eight studies found that eating more leafy greens was linked to up to a 16% reduction in heart disease risk.
2. Healthy Proteins:
Lean meats, poultry, fish, low-fat dairy, and eggs are excellent sources of protein. Legumes such as beans, peas, and lentils offer a low-fat, plant-based alternative. Replacing animal protein with plant-based options (like a black bean burger instead of a beef burger) helps reduce fat and cholesterol intake while increasing fiber.
3. Healthy Fats:
Not all fats are bad. Foods with monounsaturated and polyunsaturated fats are important for your brain and heart. Limit foods with trans-fats, which increase the risk for heart disease.
4. Whole Grains:
Whole grains are rich in fiber and essential nutrients that help manage blood pressure and support heart health.
Eating heart-healthy is a lifestyle choice—one that involves making nutritious, balanced food choices. What you eat affects nearly every aspect of heart health, including blood pressure, cholesterol, inflammation, and triglycerides. A well-balanced diet is key to maintaining a healthy heart and lowering the risk of heart disease. With a little planning and some simple substitutions, you can make heart-healthy choices a part of your daily life!
For employers subject to the Affordable Care Act (ACA), staying compliant with reporting requirements is non-negotiable. With 2025 due dates just around the corner, now is the time to prepare for distributing Forms 1095-C to employees and filing with the IRS. These forms provide essential information about health coverage offered to employees and are critical for demonstrating compliance with the ACA’s employer mandate. Missing these deadlines can lead to potential costly penalties and compliance headaches.
Key ACA Reporting Deadlines for 2025
Here are the critical dates you need to mark on your calendar for reporting on the 2024 tax year:
March 3, 2025:
Deadline for furnishing Form 1095-C to employees.
Employers must provide their employees with a copy of Form 1095-C, which details the health coverage offered, by this date.
February 28, 2025:
Deadline for paper filing with the IRS.
Employers filing fewer than 10 forms (aggregated with other forms, such as W-2, 1099) may submit paper forms to the IRS. Note: Paper filing is only an option for small employers below the e-filing threshold.
March 31, 2025:
Deadline for electronic filing with the IRS.
Employers submitting 10 or more forms are required to file electronically. The extra time provided for electronic filing gives employers a little breathing room, but it’s essential to plan ahead and avoid last-minute delays.
Penalties for Missing ACA Reporting Deadlines
Failing to meet ACA reporting deadlines can result in hefty penalties:
Late Furnishing to Employees:
Employers can be fined up to $310 per form for not providing Form 1095-C to employees by March 3, 2025.
Late Filing with the IRS:
Penalties start at $60 per form for filing within 30 days of the deadline but can escalate to $310 per form for longer delays.
Incorrect or Incomplete Information:
Filing forms with incorrect data, such as employee names or Social Security Numbers, can lead to additional penalties.
Intentional Disregard:
If the IRS determines that an employer intentionally ignored filing requirements, penalties can skyrocket to $630 per form with no annual cap.
Checklist to Stay on Track for ACA Reporting in 2025
Use this checklist to ensure timely and accurate submissions:
Verify Employee Data:
Review employee names, SSNs, and coverage details for accuracy.
Select Your Filing Method:
Determine whether you’ll file on paper (if eligible) or electronically. Ensure you have the necessary software for electronic submissions.
Monitor Deadlines:
Set reminders for March 3(employee furnishing), February 28 (paper filing), and March 31 (electronic filing).
Test Your Process:
If filing on your own, conduct a test submission through the IRS AIR system to identify potential errors before the official filing.
Leverage Technology:
Use an ACA compliance software solution to automate form generation, validation, and submission.
Train Your Team:
Ensure HR, payroll, and benefits teams understand the reporting requirements and deadlines.
Work with Experts:
Consider outsourcing ACA compliance to a trusted vendor if your internal resources are limited.
Conclusion
ACA reporting doesn’t have to be overwhelming—preparation is key. By understanding the deadlines, filing methods, and potential pitfalls, employers can stay compliant and avoid penalties. With the reporting season fast approaching, now is the time to finalize your plans, gather your data, and ensure you’re ready to meet the 2025 deadlines.
