Employer Shared Responsiblity Penalties

To avoid possible penalties, applicable large employers (ALEs) must offer affordable/minimum value health benefits to at least 95% of full-time employees and their dependents.

A penalty is triggered only if one or more employees purchase coverage in the exchange and qualify for a subsidy. There are two possible penalties, the Code § 4980H(a) and the Code § 4980H(b) penalty.

This matrix illustrates indexed penalty amounts based on all 12 months, but penalties are assessed individually per month. (updated March 2023)