IRS Announces Increases to 2024 Employer Shared Responsibility Penalties
March 14, 2023
On March 9, 2023, the IRS released Revenue Procedure 2023-17, which provides, in part, indexing adjustments for penalties under the employer mandate. As a reminder, the ACA requires applicable large employers (ALEs) – those with 50 or more full-time and full-time equivalent employees (FTEs) – to offer affordable minimum value coverage to substantially all FTEs and their dependents or risk a penalty.
For plan years beginning after December 31, 2023, the annual penalties are as follows:
- Penalty A (failure to offer coverage to substantially all FTEs) – $2,970 per FT employee.
- Penalty B (failure to offer affordable coverage that meets minimum value standards) – $4,460 per FT employee receiving a premium tax credit.
Although generally expressed as an annual amount, as listed above, both penalties are calculated and assessed on a monthly basis.
Revenue Procedure 2023-17 »