To activate a shared-responsibility penalty, both triggers must occur:
- Trigger 1: (at least one of these is true for your company):
- Your company doesn’t offer health care coverage to 95 percent of all full-time employees and their dependent children.
- Your company offers coverage that isn’t considered affordable.
- Your company offers coverage that doesn’t meet minimum value standards.
- Trigger 2: At least one employee or their dependent child receives a subsidy through a federal or state insurance exchange to help offset the cost of purchasing health care coverage.
Penalties are as follows:
- $2,000 penalty per full-time employee - If an employer doesn’t offer any type of health care coverage to all of its full-time employees and their dependents, the employer is penalized a fee of $2,000 for each of its full-time employees, excluding the first 30, if at least one of their full-time employees qualifies for and receives a premium subsidy in the individual insurance market through a federal or state exchange.
- $3,000 penalty per full-time employee or dependent receiving a subsidy - If an employer offers coverage that is either unaffordable or doesn’t meet minimum value requirements, the employer is penalized $3,000 only for each full-time employee or dependent who purchases health care coverage in the individual market through a federal or state exchange and receives a premium subsidy.