The IRS has begun issuing letters to employers who are not offering health coverage to full-time employees. Under the Affordable Care Act’s (ACA) employer shared responsibility rule, applicable large employers must provide affordable health coverage to full-time employees or face stiff penalties.
There are two key provisions to the ACA’s employer shared responsibility rule that can trigger thousands of dollars in penalties:
- Full-time employees must be provided health coverage.
- That coverage must be adequate and affordable, as specified by the law.
Penalty amounts will depend on the year. Not offering health coverage could cost you between $2,080 and $2,320 per full-time employee. If coverage is unaffordable or inadequate, penalties range from $3,120 to $3,480 per affected employee.