Employee Benefits and the IRS: Key Tax Filing Deadlines to Know

For employers, offering competitive benefits is only part of the job — staying compliant with the IRS’s complex reporting requirements is the other.

Between ACA filings, Form 5500 reports, and payroll-related filings, there are dozens of important tax deadlines that tie directly into employee benefits. Missing these deadlines can lead to hefty penalties, not to mention headaches during audits or renewals.

In this guide, we’ll break down key IRS deadlines and forms employers must know in 2025, explain how they relate to employee benefits, and show how Taylor Benefits Insurance Agency helps businesses stay compliant and stress-free all year long.

Why IRS Compliance Matters for Employee Benefits

Employee benefits don’t just attract and retain talent — they’re also highly regulated under federal law. The IRS, Department of Labor (DOL), and Department of Health and Human Services (HHS) share oversight of employer-sponsored benefit plans.

IRS compliance matters because:

• Penalties are steep: Missing or incorrect filings can cost thousands per form.

• Employee protections: Proper reporting ensures employees get fair and accurate coverage.

• Audit readiness: IRS and DOL audits increasingly target benefits documentation.

• Tax advantages: Employer-sponsored plans often rely on tax deductions or exclusions that require strict adherence to filing rules.

In short: compliance protects your company’s finances and reputation.

Key IRS Forms Related to Employee Benefits

Let’s start by understanding the major IRS forms employers must deal with when managing benefits.

Each of these forms connects directly to benefits administration — from health coverage and COBRA to self-funded plans and ACA compliance.

ACA Reporting Deadlines for 2025

Under the Affordable Care Act (ACA), Applicable Large Employers (ALEs) — those with 50 or more full-time or equivalent employees — must report health coverage data to both employees and the IRS.

Key ACA Forms:

• Form 1095-C: Sent to employees; details their health coverage.

• Form 1094-C: Sent to the IRS as a summary of all 1095-Cs.

Deadlines for 2025 (2024 Coverage Year):

• Employee Copies Due: March 3, 2025

• IRS Paper Filing: February 28, 2025

• IRS Electronic Filing: March 31, 2025

💡 Pro Tip: The IRS now requires electronic filing for employers submitting 10 or more forms, including W-2s, 1099s, and ACA filings.

Penalty for Noncompliance: Up to $310 per form for late or incorrect filings, capped at $3.7 million annually (2025 inflation-adjusted).

Form 5500: The Annual Benefits Report

ERISA requires most welfare benefit plans (health, life, disability, etc.) and retirement plans to file Form 5500 annually with the DOL — but it’s also shared with the IRS.

Who Must File:

• Employers with 100+ participants in a benefit plan

• Employers sponsoring funded or trust-based plans (even with fewer employees)

Key Information Included:

• Plan details and financials

• Participant counts

• Contributions and claims paid

• Service provider information

Filing Deadline:

• July 31, 2025 for calendar-year plans

• Extensions: File Form 5558 for a 2½-month extension (to October 15, 2025).

Penalty for Late Filing:

• Up to $2,670 per day (DOL) and additional IRS penalties.

💡 Tip from Taylor Benefits: Even if your plan is fully insured and under 100 participants, we recommend maintaining ERISA-compliant plan documents and SPDs — you may not have to file, but you still need proof of compliance.

Form 720: PCORI Fee for Self-Funded Plans

If your company sponsors a self-funded or level-funded health plan, you must pay an annual fee to the Patient-Centered Outcomes Research Institute (PCORI).

Key Details:

• Reported on IRS Form 720.

• Due July 31, 2025, covering plan years ending in 2024.

• Fee amount for plan years ending before Oct 1, 2024: $3.22 per covered life (expect slight increase for 2025).

💡 Who Pays:

• Fully insured plans → Insurance carrier files and pays.

• Self-funded plans → Employer is responsible for filing and payment.

Penalty: Late PCORI filings can accrue penalties and interest, though the IRS often allows first-time relief if corrected quickly.

COBRA, HIPAA, and Other Excise Tax Reporting

If an employer fails to comply with COBRA continuation, HIPAA privacy, or other health plan requirements, they may need to file Form 8928.

Common Violations That Trigger Form 8928:

• Failure to offer COBRA continuation.

• Late COBRA notices.

• Violations of HIPAA privacy or portability rules.

• Noncompliance with ACA preventive care or parity requirements.

Deadline:

• Due with the employer’s annual income tax return.

Penalties:

• Up to $100 per affected employee per day, capped at $500,000 annually for unintentional violations.

Reporting Health Coverage on W-2 Forms

Under the ACA’s employer mandate, all employers that provide group health insurance must report the cost of coverage on employee W-2s.

How to Report:

• Enter the total cost of employer-sponsored health coverage in Box 12, Code DD on Form W-2.

• Applies to both employer and employee contributions.

Deadline:

• January 31, 2025 (same as W-2 deadline).

💡 Note: Reporting is for informational purposes only — it does not affect taxation of benefits.

Quarterly Payroll Filings Related to Benefits

Benefits and payroll are closely linked. Employers must ensure benefit-related deductions align with tax filings.

Key Payroll Forms:

• Form 941 (Quarterly Federal Tax Return) – reports payroll taxes withheld.

• Form 940 (Annual FUTA Return) – for unemployment taxes.

Although these aren’t strictly “benefits” forms, inaccuracies in payroll data (like pre-tax benefit deductions under Section 125 plans) can create compliance issues with the IRS.

Recordkeeping & Audit Readiness

The IRS and DOL expect employers to maintain documentation proving compliance with benefit-related filings.

Keep These Records for at Least 7 Years:

• Filed 1094-C/1095-C forms

• Form 5500 and schedules

• W-2 copies and payroll records

• COBRA notifications and election records

• SPD, plan documents, and carrier invoices

💡 Tip: Digitize everything. The DOL increasingly accepts electronic submissions during audits, but requires documents to be retrievable within 10 business days.

How Taylor Benefits Insurance Agency Helps Employers Stay Compliant

At Taylor Benefits Insurance Agency, we go beyond plan design — we help employers stay audit-ready and compliant with all IRS, DOL, and ACA regulations.

Our team provides:

• Compliance Calendars: Customized reminders of all major IRS and DOL deadlines.

• Form 5500 Filing Support: Guidance and preparation assistance.

• ACA Reporting Help: Coordination with payroll and HR systems to ensure accurate Form 1095-C data.

• Self-Funded Plan Filings: PCORI and other required fee management.

• Audit Preparation: Ensuring all documentation is in order for DOL or IRS audits.

Whether you manage a small team or a large multi-state workforce, Taylor Benefits ensures your filings are timely, accurate, and penalty-free.

Key 2025 IRS Deadlines Summary

Final Word

Employee benefits compliance doesn’t stop at offering coverage — it extends into a complex network of IRS filings, tax forms, and deadlines. Missing just one can trigger costly fines or audits.

At Taylor Benefits Insurance Agency, we help employers simplify compliance with proactive guidance, calendar-based reminders, and hands-on support for all IRS and DOL filings.

Whether you’re managing ACA reporting, self-funded plan fees, or annual Form 5500 submissions, our team ensures you stay ahead of every deadline — so you can focus on your people, not the paperwork.

Stay compliant. Stay confident. Partner with Taylor Benefits.