ACA Penalty Estimator
Estimates potential Affordable Care Act penalties for applicable large employers
Total number of full-time equivalent employees
Employees who were offered qualifying health coverage
Number of months not in compliance (1-12)
Penalty for not offering coverage to 95% of FTEs
Penalty for unaffordable or non-qualifying coverage
The penalty most likely to apply based on your inputs
Frequently Asked Questions
Who is subject to ACA penalties?
Applicable Large Employers (ALEs) with 50+ full-time equivalent employees must offer affordable, minimum-value health coverage to at least 95% of full-time employees. Failure triggers penalties under IRC sections 4980H(a) or 4980H(b).
What is the 4980H(a) penalty?
If an ALE fails to offer coverage to at least 95% of full-time employees and at least one employee receives a marketplace subsidy, the penalty is (total FTEs minus 30) times $2,970 per year (2024). This applies to the entire workforce.
What is the 4980H(b) penalty?
If coverage is offered but is unaffordable or does not meet minimum value, the penalty is $4,460 per year (2024) for each employee who receives a marketplace subsidy. This is per affected employee, not the whole workforce.
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