In August 2022, the IRS updated its frequently asked questions (FAQs) on the employer-shared responsibility rules (commonly referred to as the “pay or play” rules) under the Affordable Care Act (ACA) to include updated penalty amounts for 2023. For calendar year 2023, the inflation adjusted $2,000 penalty amount is $2,880 and the adjusted $3,000 penalty amount is $4,320.
Download the bulletin to get a breakdown of the potential penalties (4980H(a) penalty or the 4980H(b) penalty) that may apply under the pay or play rules and a summary of when an employer is liable for a penalty.
Large employers (at least 50 full-time and full-time equivalent employees) should work with a trusted advisor to ensure full compliance with the ACA rules applicable to them. For more details on the ACA “pay or play” provisions, contact Plante Moran Group Benefit Advisors.
