March 2025 HR Newsletter | Forsite Benefits

Small Businesses Expect to Increase Employee Count in 2025

Nearly 2 in 3 CEOs of small and midsized businesses (SMBs) expect their total number of employees to increase in 2025, according to a quarterly analysis by Vistage, a CEO coaching organization. These CEOs (65%) are optimistic about hiring and growth this year. The latest Vistage quarterly confidence score is the highest recorded since the second quarter of 2021.

“More than half of CEOs expect the economy to improve in the coming year, with many optimistic about the new administration and the potential for pro-business policies, reduced regulations, lower inflation, and reduced borrowing costs to drive investment and fuel growth.”

- Joe Galvin, chief research officer, Vistage

Much of this hiring confidence is tied to the potential impact of a new presidential administration and economic conditions, including administration policies, trade regulations, and inflation. More than half (55%) of surveyed CEOs believe the economy will improve over the next year and anticipate that the following policy shifts will positively impact their businesses:

Tax policy changes
Regulatory compliance changes
Labor and employment laws

SMB owners are divided on whether environmental, sustainability, and health care policy changes will negatively or positively impact their organizations. Despite optimism for other policy shifts, 60% of CEOs expect that tariffs and trade policy changes will negatively impact their business, and 29% anticipate that immigration policy changes will do so.

Several industry reports, including the National Federation of Independent Business Small Business Optimism Index and the MetLife and U.S. Chamber of Commerce Small Business Index, validate the Vistage analysis, supporting SMB owners’ optimism about economic expectations and business growth.

Employer Takeaway

As leaders of small businesses express a positive outlook about revenue, profits, and growth in 2025, their hiring plans are poised to exceed pre-COVID-19 pandemic levels this year. Employers should continue to monitor labor market trends and economic conditions. Contact us for more resources.

Newly Passed Legislation Modifies ACA Reporting Requirements

At the end of 2024, Congress passed two new laws, the Paperwork Burden Reduction Act and the Employer Reporting Improvement Act. These laws eased the Affordable Care Act (ACA) reporting requirements for employers and set new limits on the IRS’ assessment of “pay-or-play” penalties, among other changes.

As background, the ACA requires applicable large employers (ALEs) and non-ALEs with self-insured health plans to provide information to the IRS about the health plan coverage they offer (or do not offer) to their employees. They must also provide related statements to individuals regarding their health plan coverage.

Previously, ALEs were required to provide each full-time employee with a statement regarding their health coverage (Form 1095-C) within 30 days of Jan. 31 each year. The IRS has allowed non-ALEs with self-insured health plans to provide health coverage statements (Forms 1095-B) to covered individuals upon request only. Beginning in 2025, this flexibility is extended to ALEs for furnishing Forms 1095-C.

Accordingly, employers are no longer required to send Forms 1095-C and 1095-B to individuals unless a form is requested. Employers must give individuals timely notice of this option in accordance with any requirements set by the IRS. Requests must be fulfilled by Jan. 31 of the year following the calendar year to which the return relates or 30 days after the date of the request, whichever is later. The statements may be provided electronically to individuals who have consented in the past.

ALEs and non-ALEs with self-insured plans are still required to file ACA returns with the IRS. The deadline for electronic filing is March 31, 2025.

In addition, ALEs are subject to IRS penalties if they do not offer affordable minimum essential coverage under the ACA’s employer shared responsibility (pay-or-play) rules. The new legislation increases the time ALEs have to respond to IRS penalty assessment warning letters from 30 days to 90 days. The legislation also imposes a six-year time limit on when the IRS can try to collect assessments.

If you have any questions about these new requirements, don't hesitate to contact us at assist@forsitebenefits.com for more information.

Catch the Latest Great Culture Webinar Episode!

Forsite's sister company, Motion Connected, continues the Great Culture webinar series with an inspiring conversation featuring Alysia Perron from SNHU and Sarah Troup.

Drawing on years of experience in organizational wellbeing, they share actionable insights on how to cultivate a thriving workplace culture—from empowering teams with holistic wellness strategies to communicating effectively across all levels of an organization.

Whether you’re refining your current programs or looking for fresh ideas, this dynamic episode offers valuable takeaways to help you lead your team from “good” to “great.” Stay tuned for more upcoming episodes, and join us in nurturing a healthier, happier workforce!

Click here to watch the latest episode.

4 Attraction and Retention Trends to Monitor in 2025

Employers will likely continue to struggle to attract and retain talented employees this year. An EY report found that 38% of employees are likely to leave their jobs in 2025. This article explores four attraction and retention trends for employers to watch in 2025.

1. The Push for Return to Work

More employers worldwide are becoming “office advocates,” scaling back flexible work policies and mandating five-day in-office workweeks. However, many workers still value remote jobs and flexible work options, requiring employers to balance employee preferences with business needs.

2. Growing Demand for GLP-1s

Weight loss drugs continue to grow in popularity. Since glucagon-like peptide-1 (GLP-1) treatment costs, on average, $1,000 per individual each month, workers may be looking for employer-sponsored coverage for these weight loss drugs and could make their employment decisions based on such offerings. While more employers are considering covering GLP-1s, many are concerned that they must be used for extended periods to be effective, requiring a long-term commitment.

3. Gig Work Popularity

Gig work is quickly becoming a key component of the world economy. Organizations are increasingly competing with the appeal, accessibility, and flexibility of gig work. Employers may explore ways to compete with the gig economy’s advantages by offering autonomy, schedule flexibility, and faster access to earnings.

4. The Rise of AI and Automation

Artificial intelligence (AI) and automation are undoubtedly changing the future of work. Reports show that as machines and algorithms begin performing manual tasks, millions of jobs will be created in areas such as data analysis, software development, and cybersecurity. This means that many jobs employers are hiring for in 2025 and beyond may require advanced skill sets.

Employer Takeaways

Employers can remain competitive in an evolving labor market by monitoring employees’ current and prospective needs and wants throughout the year. Reach out today to learn more.

5 Cost-cutting Tips for Small Businesses

Reducing expenses may be essential for any organization, but it’s especially important for small businesses since they typically have fewer resources than larger employers. Instead of cutting costs randomly or conducting unnecessary layoffs, successful organizations tend to optimize their resources strategically.

Savvy small businesses can identify areas to reduce expenses without compromising productivity or future growth.

Here are five cost-cutting tips for small businesses:

1. Invest in New Technology

Technology allows organizations to improve or even automate manual, error-prone tasks. Adopting new technology, such as software, automation, and artificial intelligence, may decrease costs by streamlining operations and increasing efficiency. Technologies for small businesses may include project management software, HR information systems, delivery and packaging systems, and automated inventory management.

2. Strengthen Employee Retention

Employee turnover can be detrimental to small businesses due to the costs to replace employees, decreased productivity, and lost profits. To avoid this, small businesses can prioritize retention efforts by providing employees with learning and development opportunities, focusing on developing a healthy workplace culture, permitting flexible working arrangements, and offering evolving employee benefits to meet workers’ needs.

3. Manage Health Care Costs

For small businesses that offer health care benefits, costs can add up quickly. Solutions may include reevaluating plan designs and offerings, directing employees to cost-effective services, and improving employee health care literacy. Small businesses can better manage health care costs by adopting several cost-cutting strategies without sacrificing employees’ needs.

4.Embrace Outsourcing

While performing tasks in-house can often be cost-effective, there are instances when outsourcing nonessential tasks can be more economical. Manual, time-consuming tasks—such as accounting, payroll, and benefits administration—may be better suited for outsourcing for some organizations. In some cases, businesses may also find cost savings by outsourcing tasks such as delivery or even customer service.

Outsourcing these kinds of tasks can enable employees to focus on tasks that directly impact a small business’s bottom line and potential growth.

5.Review Expenses

Regularly reviewing expenses can be an effective way to reduce and even eliminate extra costs. Employers should consider negotiating with providers, suppliers and vendors to potentially defer payments, reduce fees, improve rates, and receive additional services to help during difficult times. By establishing and fostering relationships with these individuals and entities, organizations can cultivate allies and acquire strategic partners, which can pay dividends by creating cost-saving solutions and opportunities. In addition, periodic audits of contracts and expenses for excess spending may uncover spending that is no longer necessary.

Employer Takeaway

Employers can implement several strategies to reduce costs and impact their bottom line. Which strategies are feasible will vary by small business, but a proactive approach to cost-cutting may allow for a larger budget to reinvest in the core of the business and its employees.

For more workplace resources, contact us today.

Forms 1094 & 1095: Forms, Instructions, & Deadlines

The Affordable Care Act requires applicable large employers (ALEs)—generally those with 50 or more full-time employees—to report information to the IRS and to their full-time employees about their compliance with the employer shared responsibility (pay or play) provisions and the health care coverage they have offered (or did not offer).

Self-insured, including level-funded, employers (regardless of size) have additional reporting responsibilities that apply to health coverage providers.

Forms & Instructions

The following Internal Revenue Service (IRS) forms and instructions are available for 2024 calendar year reporting:

Minimum Essential Coverage (MEC) Reporting (Section 6055)

Form 1094-B and Form 1095-B (view instructions)

Large Employer Reporting (Section 6056)

Form 1094-C and Form 1095-C (view instructions)

Deadlines

The following chart provides the information reporting due dates for 2024 calendar year reporting for ALEs (both fully-insured and self-insured), as well as for small-level funded employers that are not considered ALEs.

Action	Fully-Insured ALEs	Self-Insured ALEs (Level Funded)	Level Funded Employers with Fewer Than 50 Full-Time Employees
Form 1095-C to Full-Time Employees	The Paperwork Burden Reduction Act (H.R. 3797) (“PBRA”), aims to ease the strain of this deadline requirement by providing the following: • Employers are no longer required to send employees a Form 1095-B or 1095-C, unless the employee requests a copy of the applicable form. •Notice of Availability. To take advantage of this new process, employers must provide a “clear, conspicuous, and accessible notice” to employees informing them that they can request a copy of the Form 1095-B or 1095-C. (The PBRA states that the IRS may publish regulations relating to the time and manner of this notice.)	The Paperwork Burden Reduction Act (H.R. 3797) (“PBRA”), aims to ease the strain of this deadline requirement by providing the following: • Employers are no longer required to send employees a Form 1095-B or 1095-C, unless the employee requests a copy of the applicable form. •Notice of Availability. To take advantage of this new process, employers must provide a “clear, conspicuous, and accessible notice” to employees informing them that they can request a copy of the Form 1095-B or 1095-C. (The PBRA states that the IRS may publish regulations relating to the time and manner of this notice.)	Not Applicable
Form 1095-B to Responsible Individuals (May be the primary insured, employee, former employee, or other related person named on the application)	Not Applicable	Review Paperwork Burden Reduction Act, as described above	March 3, 2025, if not using the alternative method of furnishing. Under this method, a reporting entity must post a clear and conspicuous notice on its website stating that responsible individuals may receive a copy of their statement upon request.
File Forms 1094-C & 1095-C with the IRS	March 31, 2025*	March 31, 2025*	Not Applicable
File Forms 1094-B & 1095-B with the IRS	Not Applicable	ALEs providing self-insured coverage to non-employees may use either the B series Forms or the C series Forms to report coverage for those individuals and other family members covered under the plan, by March 31, 2025*	March 31, 2025*

*Beginning in 2024, reporting entities that file at least 10 returns during the calendar year must file electronically. Reporting entities must aggregate most information returns, such as Forms W-2 and 1099, to determine if they meet the 10-return threshold for mandatory electronic filing.

On December 11, 2024, Congress passed the Employer Reporting Improvement Act (H.R. 3801) (“ERIA”), which codifies certain IRS regulations designed to make ACA reporting easier for employers:

1. DOB May Substitute TIN—The ERIA codifies IRS guidance allowing employers to substitute an employee’s date of birth (“DOB”) for their Tax Identification Number (“TIN”) for purposes of ACA-related returns if the employee’s TIN is unavailable.

2. Electronic Delivery of Requested Form—The ERIA also codifies the IRS’s electronic delivery rules with respect to Forms 1095-B and 1095-C, allowing employers to furnish those forms electronically to participants who consent to electronic delivery. The ERIA makes these changes effective for all statements with due dates after December 31, 2024.

Carrier Specific Information

The following carrier details help you navigate your specific carrier requirements.

Carrier	Details
UnitedHealthcare	Fully Insured Groups: https://www.uhc.com/legal/irs-form-1095-b 1095-B will be produced for all UnitedHealthcare fully insured members and made available on member websites. A request for a paper form can be made. Level Funded Groups: Access the Mineral site to complete the ACA filing, including delivery of IRS Forms 1095-B and C to employees and the electronic transmissions (E-filing) to the IRS.
Dean Health Plan/Prevea360	Dean Health Plan provides a report, and the group is responsible for the filing. Prevea360 will provide 1095-B only upon member request to generate.
Humana	Generates the 1095-B forms and submits 1094-B reporting to the IRS. All members can request or obtain a copy via Humana.com.
Network Health Plan	Sends the 1095-B reports to the members (including those on level-funded plans) and transmits this information to the government, including the 1094-B transmittal/cover letter. For the applicable large employer (51+FTE) they do not do the 1094/1095-C series. Network Health Plan will provide a group report upon request to assist with the completion of the form.
Robin HealthPartners	Posts reports on the Employer Portal by January 31st. They provide Form 1095- B to individuals who request them.
WPS	Providing forms 1094-B (transmittal to IRS) and 1095-B (sent to each covered member) for all fully insured and level-funded groups. Can provide Series C reporting upon request.
Anthem	Fully Insured Groups: Mails all the 1095-B forms to members directly starting in late January. They electronically file the 1094-B to the IRS on the group's behalf. Level Funded Groups: 1095s are placed on the employer portal to distribute to employees.

Where do I go if I have questions?

Contact us today to speak with a member of your Forsite Benefits Advisory Team or your tax advisor if you have any questions.