The IRS Finally Confirms Penalty Amounts for the Pay or Play Penalties for 2015 (and 2016)
There have been many articles speculating as to what the pay or play employer mandate penalties would be for 2015. The ACA provides that both the $2,000 penalty for failing to offer minimum essential coverage to all of your full-time employees and the $3,000 penalty for failing to offer minimum value, affordable coverage to a full-time employee will be adjusted for inflation in years after 2014. With a mere two weeks to go in 2015, the IRS finally confirmed in a Notice that the penalty amounts for 2015 would be increased to $2,080 ($173.33/month) and $3,120 ($260/month).
While they waited until just before the clock struck midnight on giving us the 2015 penalty amounts, they were kind enough to already give us the 2016 amounts (if this is the IRS’s idea of a Christmas present they are not very good gift givers). A large employer who does not offer coverage to substantially all of its full-time employees in 2016 will be subject to an annual penalty of $2,160 ($180/month) multiplied by all of its full-time employees less 30 in 2016. An employer who does not offer minimum value, affordable coverage to a full-time employee who goes to the exchange and receives financial assistance will receive an annual penalty of $3,240 ($270/month) per full-time employee that goes to the exchange and receives financial assistance.