Penalties for not offering coverage to all full-time employees

Q: What are the penalties for not offering coverage to all full-time employees? What size employer pays the penalties?

A: ALE’s are exposed to a $2,000 per full-time employee penalty (as indexed) if they do not offer coverage to at least 95% of full-time employees and at least one full-time employee receives a federal premium subsidy, or a $3,000 per subsidy-receiving full-time employee if they offer coverage to at least 95% of full-time employees but it is not “affordable.” The $2,000 penalty is reduced by 30 full-time employees.

 

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