IRS Releases Annual ACA Employer Mandate Inflation Adjustments

The Internal Revenue Service updated the annual penalties that large employers must pay for not offering minimum coverage under the Affordable Care Act.

The ACA requires employers with at least 50 full-time employees to offer “minimum essential coverage” that is considered affordable and covers at least 60% of expected costs. The guidelines released Tuesday increase the fines to account for inflation.

Employers who do not offer minimum coverage to at least 95% of their workforce and who have at least one employee receive the ACA’s premium tax credit will pay a penalty of $3,340 per employee in 2026. ...