IRS Announces 2024 Shared Responsibility Penalties under the Affordable Care Act

The IRS has announced an increase in the annual shared responsibility penalty amounts for calendar year 2024.  These are the penalties that an applicable large employer can be assessed under the ACA if a full-time employee enrolls for subsidized coverage through an Exchange and the employer has failed  to offer minimum essential coverage to 95% of its full-time employees and their dependents (the subsection (a) penalty); or failed to offer full-time employees and their dependents coverage that is affordable and provides minimum value (the subsection (b) penalty).  The penalty amounts are indexed annually for inflation.

For 2024, the subsection (a) penalty is $2,970 and the subsection (b) penalty is $4,460.  The penalties are assessed on a monthly basis so the monthly amounts are the annual amounts divided by 12.

The information and content contained in this blog post are for general informational purposes only, and does not, and is not intended to, constitute legal advice. As always, for specific questions concerning your health and welfare plan, or for help in operating your plan during the current COVID-19 crisis, please consult your own ERISA attorney or professional advisor.

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