The ACA Times


  Show menu
  • Home
  • Articles
  • Get to Know the ACA
  • ACA – Frequently Asked Questions
  • Resources
  • Meet the Editors
  • Trusaic
  • Contact Us
  • Legal
  
  • Home
  • Affordable Care Act
  • “Pay or Play” Penalties For 2015 and 2016

Articles

“Pay or Play” Penalties For 2015 and 2016

December 22, 2015 Robert Sheen Affordable Care Act, Applicable Large Employer (ALE), IRS, Penalties
“Pay or Play” Penalties For 2015 and 2016

The IRS has announced the 2015 and 2016 “pay or play” penalties, adjusted for inflation, that may be imposed on employers who fail to comply with the Affordable Care Act’s employer mandates.

When passed in 2010, the ACA provided for a $2,000 penalty if an applicable large employer fails to offer all full-time employees health insurance with minimum essential coverage, and a $3,000 penalty for failing to offer these employees coverage that is affordable and meets standards for minimum value. Both amounts are adjusted annually for inflation after 2014.

The agency said the 2015 penalty for failing to offer coverage to substantially all full-time employees will be $2,080, or $173.33 per month, multiplied by the total number of employees minus 80.

The penalty for not providing affordable minimum-value coverage in 2015 will increase to $3,120, or $260 per month, for each full-time employee who obtains individual coverage through a government exchange and receives a premium subsidy.

For 2016, the IRS said, the penalties will rise to $2,160, or $180 per month, multiplied by the total number of employees minus 30, and $3,240, respectively.

To learn more about ACA compliance in 2021, click here.


We’re committed to helping companies reduce risk, avoid penalties, and achieve 100% ACA compliance. For questions about the ACA contact us here.

Short URL of this page: https://acatimes.com/bhs
Robert Sheen

Robert Sheen

Esq., is editor-in-chief of The ACA Times. He also is founder, president and CEO of Trusaic.

Robert Sheen is Founder and President of Trusaic. Robert is a graduate of the University of Southern California, in Business Administration with an emphasis in International Finance. He earned his Juris Doctor from Loyola Law School, Los Angeles, concentrating in Tax Law.

View more by Robert Sheen

Related tags to article

Penalties
Related Articles How to Leverage Your Workforce Data to Meet DEI Goals How to Leverage Your Workforce Data to Meet DEI Goals
Related Articles An Employer’s Guide to Navigating the DEI&A Landscape An Employer’s Guide to Navigating the DEI&A Landscape
Related Articles Governments, Investors, & Litigators Are Focusing More on ESG Governments, Investors, & Litigators Are Focusing More on ESG
Related Articles Penalties Increased for Filing Errors Penalties Increased for Filing Errors by Robert Sheen  •  
Related Articles Reporting Deadlines Extended Reporting Deadlines Extended by Robert Sheen  •  
Related Articles Calculating FT and FTE Employees [UPDATED] Calculating FT and FTE Employees [UPDATED] by Joanna Kim-Brunetti  •  
Subscribe

Popular Posts

  • California Individual Mandate Penalties Will be Issued in 2021
  • Biden’s Affordable Care Act Advancements are Underway
  • What Employers Need to Know About the 2020 ACA 1095-C Codes
  • Employers May Face Additional Challenges with 2020 ACA Reporting
  • Five Resources Essential for ACA Compliance in 2021
  • Most Frequently Asked ACA Questions for Employers and Individuals
  • Taxpayers (Including Employers) Have the Right to the Challenge IRS
  • The IRS is Issuing ACA Penalty Letter 226J for 2018

Trending Topics

  • Regulations
    (91)
  • Legislation
    (47)
  • Editorials
    (19)
  • ACA Compliance
    (126)
  • Tax Filings
    (19)
  • Applicable Large Employer (ALE)
    (13)
  • Penalties
    (18)
  • IRS
    (82)
  • Health Insurance Marketplace
    (28)
  • Polls/Surveys
    (18)
  • Health Care Reform
    (22)
  • Reporting
    (22)
  • IRS 226J/226-J
    (28)

Categories


Brought to you by Trusaic

 

 

 

Twitter Facebook

Downloads

The ACA 101 Toolkit

The Essential Guide to the ACA

Letter 226J Infographic

5 Common ACA Compliance Mistakes

Triangle of Trust

Articles

IRS Affordability Safe Harbors Help Avoid ACA Penalties

Calculating FT and FTE Employees

The ACA Monthly Measurement Method: A Few Examples

The IRS’s 1095 Forms for ACA Explained

Incorrect ITINs Will Cause Havoc With ACA Compliance

Knowledge Center

Get to know the ACA

Get to know Letter 226J

Webinar: The Recipe for Successful ACA Compliance

Trusaic News

Our Story

© 2021 Copyright Trusaic - All Rights reserved.

Close Window

Loading, Please Wait!

This may take a second or two. Loading, Please Wait!