Governmental Agencies Must Designate an Employee Responsible For ACA Reporting

With the Affordable Care Act (ACA) reporting on the horizon, governmental agencies that are applicable large employers under the ACA must ensure they have designated the person who is responsible for the reporting. The Treasury Regulations require governmental agencies to prepare a written designation identifying the person who is responsible for furnishing and filing IRS Form 1094-C and Forms 1095-C on behalf of the agency. The written designation must:

• Identify and appoint the designated person as the person responsible for furnishing and filing IRS Form 1094-C and Forms 1095-C on behalf of the agency;
• Identify the category of full-time employees for which the designated person is responsible for reporting. This could be all full-time employees of the agency, or a particular job category of full-time employees, as long as the specific employees covered by the designation can be identified.
• State the name, address, and employer identification number (EIN) of the agency;
• State the name, address, and EIN of the designated person;
• Contain language that the designated person agrees and certifies that they are appropriately designated and acknowledge responsibility for the ACA reporting on behalf of the agency, and subject to the requirements of the ACA; and
• Signed by the governmental agency and the designated person.

The agency must make the written designation before the furnishing deadline (March 2, 2026).

The written designation can be prepared as a resolution passed by an agency’s governing body, a policy, a memo, or a designation letter prepared by executive leadership (e.g., a City Manager, County Administrator, General Manager, etc.). If a third-party administrator (TPA) handles an agency’s Form 1095-C filings, the service agreement between the agency and TPA should designate the responsible person. The designation does not get submitted to the IRS, but the agency must maintain the designation under the record-retention rules of Internal Revenue Code section 6103.