As the next fiscal year's Section 6056 filing deadline approaches, a key question has sparked widespread discussion in the industry: will most companies choose to delegate the filing work to third-party service providers? This trend not only reflects the trade-off between compliance costs and expertise but also directly affects the allocation of internal resources and process design within enterprises.

Based on current market feedback, many companies are evaluating the feasibility of third-party filing services, especially in organizations where human resources, payroll management, or benefits administration outsourcing is common. However, whether to adopt a third party often depends on the company's own size, the complexity of its existing compliance system, and budget constraints. Some companies may prefer in-house processing to maintain direct control over data and processes; others may rely more on the expertise of external service providers due to a lack of specialized teams or time pressure.

Regardless of which path is chosen, companies need to be clear: Section 6056 filing is not an isolated annual task but is closely related to employer responsibilities under the Affordable Care Act (ACA). Therefore, advance planning and data governance are crucial. Below are some preparatory steps that can be taken now for companies' reference:

  • Assess current data quality:Verify employee health insurance coverage information, months of coverage, and applicable employer size to ensure data is complete and meets IRS (Internal Revenue Service) formatting requirements.
  • Clarify the scope of filing responsibilities:Confirm whether the company is an Applicable Large Employer (ALE) and identify the types of forms that need to be filed (such as 1094-C and 1095-C).
  • Compare internal and outsourcing costs:Conduct a cost-benefit analysis considering labor investment, software procurement, error risk, and potential penalties.
  • Select a compliance service provider:If outsourcing is decided, review the provider's ACA filing experience, data security measures, and customer support capabilities, and sign a clear service level agreement.
  • Develop a timeline and internal review mechanism:Set key milestones such as data collection deadlines, test filings, and final submission dates, and arrange for designated personnel to review filing documents.

It is worth noting that industry observations show that the adoption rate of third-party services may vary by industry. For example, industries with high employee turnover such as healthcare, retail, and food service are more inclined to use automated tools to reduce manual errors; while professional services or technology companies may choose to file in-house due to smaller employee sizes or strong internal IT capabilities. However, this trend is not absolute, and companies still need to make decisions based on their own actual circumstances.

In addition, companies should also pay attention to the latest IRS guidance and updates to the filing system. For example, the deadlines for the 2025 filing (for the 2024 calendar year), electronic filing thresholds, and extension policies may all affect the pace of preparation. It is recommended that companies regularly visit the IRS website or consult professional advisors to obtain the latest information.

In summary, preparation for Section 6056 filing is not a one-time effort. Whether handled internally or outsourced, companies need to start data organization, process testing, and compliance reviews as early as possible. Through systematic preparation, companies can not only reduce the risk of non-compliance but also improve overall compliance efficiency, laying a solid foundation for a smooth filing in the next fiscal year.