Just as the holiday season brings its annual flurry of festivities, so too does the other seasonal tradition you know well: PPACA reporting. Administrators--if your business officials have attended the PPACA reporting workshop before, they also received an email from Shari, but you should forward this on to them just in case. If you have a new business official, share this like it’s hot.
While the Patient Protection and Affordable Care Act (PPACA) reporting obligations are more than a decade old, they continue to be a source of confusion, especially for those who only dust off the requirements once a year. Luckily, the 2025 reporting year brings only modest changes, but still enough updates and reminders to justify a fresh review of your processes before you’re buried under a blizzard of 1095-Cs.
Below is a summary of what school districts need to know as we head into 2025 and an invitation to join us for our annual PPACA webinar, where we’ll walk through everything in detail.
What’s New (or Newly Important) for 2025?
1. Electronic Filing Threshold Remains Low
As of last year, the IRS permanently lowered the electronic filing threshold to 10 forms total across all information returns combined. That means nearly every school district will be required to file 1094-C/1095-C forms electronically. Now is the time to double-check with your accounting software provider regarding end of the year trainings and verify that your login information works for the IRS AIR system.
2. Continued Enforcement of Good-Faith Relief Expiration
The IRS has not reinstated good-faith penalty relief. This means errors in coding or late submissions can result in significant penalties. Because the IRS is increasingly using automated matching systems to identify discrepancies, accuracy matters more than ever.
3. Affordability Percentage
In 2025, the PPACA affordability threshold is 9.02% of household income. The IRS recently released the 2026 threshold which is 9.96%. School districts should review employee premium contributions to confirm compliance. In the webinar, we’ll explain how these thresholds apply to plans like schools and ESUs have in place, where the insurance year changes over in the middle of the calendar year.
Join Us: Annual PPACA Update & Reporting Webinar
Just as holiday decorations reappear each year, so does PPACA reporting season. To help ease the process, Bobby and Sara will once again host the Annual PPACA Webinar. We will cover annual reporting requirements, common mistakes we see our clients make annually, a legal update for 2025, and what to look for in 2026.
Date and Time: Wednesday, December 17, 2025 from 9:00-12:00
Where: The webinar will be conducted via Zoom, and all participants will be able to ask questions during and after the presentation. All registrants will receive a copy of the slides, materials used in the webinar, and this year’s version of the instructions and forms, plus IRS documents establishing affordability, reporting deadlines, etc.
Cost: The cost will be $350 per school.
If you have any questions, please do not hesitate to contact us at ksb@ksbschoollaw.com or 402-804-8000.