Employee Benefits News
HR on Mic Podcast
The One Big Beautiful Bill Act was signed into law on July 4, 2025. It covers a range of employee benefits topics that will be of interest to employers, including tax-deductible overtime pay, pre-tax dependent care accounts, and tuition reimbursement.
In this episode of Towne Benefits' HR on Mic, Corbin and Barbara provide helpful information about the bill and ways employers might use its provisions in their recruiting and retention efforts.
2025 ACA Reporting Forms & Instructions Finalized
On Nov. 5, 2025, the Internal Revenue Service (IRS) issued final instructions for Affordable Care Act (ACA) reporting under Internal Revenue Code Sections 6055 and 6056. The release follows the IRS’ earlier publication of the final reporting forms and draft instructions for the 2025 calendar year.
Employers should become familiar with the forms and instructions for 2025 calendar year reporting and begin to explore options for filing ACA reporting returns electronically (e.g., they may be able to work with a third-party vendor to complete the electronic filing).
Click here for further instructions.
Additional IRS Resources:
Information Reporting by Providers of Minimum Essential Coverage
Information Reporting by Applicable Large Employers (ALEs)
Q&As: Information Reporting by Health Coverage Providers (Section 6055)
Q&As: Employer Information Reporting on Form 1094-C and 1095-C
Q&As: Reporting of Offers of Health Insurance Coverage by Employers (Section 6056)
End of Enhanced ACA Subsidies: Potential Impact on Employers
The Affordable Care Act (ACA) created a federally financed subsidy, called the premium tax credit (PTC), to help eligible individuals and families with low or moderate incomes afford health insurance purchased through an Exchange. During the COVID-19 pandemic, Congress temporarily enhanced the PTC by eliminating the income cap for eligibility and increasing the amount of the subsidy for all income brackets. According to a Congressional Research Service report, the number of Exchange enrollees receiving subsidized coverage rose from 9.2 million in 2020 (before the PTC enhancements) to 19.3 million in 2024.
The enhanced PTC is scheduled to expire at the end of 2025. When the enhanced subsidies expire, individuals and families with incomes above 400% of the federal poverty level (FPL) will no longer be eligible for PTCs. Also, for individuals still eligible for PTCs, the amount will be smaller compared to the enhanced credits. This is expected to lead to a reduction in federal spending, as well as an increase in premiums and a rise in the number of individuals without health coverage.
Deadline for Submitting Gag Clause Attestation is December 31, 2025
Federal law prohibits group health plans and health insurance issuers from entering into contracts with health care providers, third-party administrators (TPAs) or other service providers that contain gag clauses (i.e., clauses restricting the plan or issuer from providing, accessing or sharing certain information about provider price and quality and de-identified claims).
Health plans and issuers must annually submit an attestation of compliance with the gag clause prohibition to the Departments of Labor, Health and Human Services, and the Treasury (Departments). These attestations are due on Dec. 31 of each year. The next attestation is due on Dec. 31, 2025. The Departments may take enforcement action against plans and issuers that do not timely submit the required attestations.
Friendly Reminder: Form 5500 Filing Requirement for Group Health and Welfare Plans with 100 or More Participants
- Group health and welfare plans with 100 or more participants at the start of the plan year must file Form 5500 annually.
- Plans with fewer than 100 participants that are fully insured or unfunded may qualify for exemption, but they must evaluate this status carefully each plan year.
The Form 5500 is due by the last day of the seventh month after the end of the plan year. For plans with an effective date of 6/1, the deadline is 12/31. If additional time is needed, an extension may be requested by filing Form 5558 before the original due date.
Timely filing is essential to maintain compliance and avoid significant penalties.
Please note that Towne Benefits does not provide these services directly, but we work with several trusted entities listed below who can assist you with Form 5500 filing.
- HR Service, Inc.
- RTO Benefits Document Services
- Moneywise Document Services
- Lifetime Benefit Solutions Compliance Services