Employers Face Higher ACA Penalties in 2027
Employers that fall short on Affordable Care Act (ACA) coverage will pay more in 2027.
The IRS released the indexed employer shared responsibility penalty amounts, effective for plan years beginning after Dec. 31, 2026.
IRS Announces ACA Penalties for Next Year
The 2027 ACA penalties will be:
- $3,780 under section 4980H(a), the penalty for not offering coverage to enough full-time employees (up from $3,340), and
- $5,670 under section 4980H(b), the penalty tied to coverage that is unaffordable or lacks minimum value (up from $5,010).
These are annual, per-employee figures assessed monthly. Applicable large employers should factor in the higher exposure when making 2027 coverage offers and affordability decisions.
- Share on
Free Training & Resources
Further Reading
DoorDash will pay $131.5 million to resolve New York City findings that it failed to pay delivery workers fully or on time and violated the...
A Coast Guard reservist who is also a federal employee was entitled to differential pay while on active duty, the Supreme Court has ruled. ...
A recent Seventh Circuit court ruling focuses on a key overtime calculation issue for payroll: Which premiums belong in the regular rate of...
Picture this: A salesperson establishes a long-term relationship with a customer who places a recurring order every month. And the salesper...
Improperly calculating employees’ overtime pay can be an expensive mistake, as a Cincinnati-based logistics provider recently learned the...
Word to the wise: When OSHA comes knocking, take the visit seriously the first time around. Otherwise, the penalties can really pile up,...
