ACA Potential Penalty Calculator

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ACA Potential Penalty Calculator

Help determine an estimate of your potential 2024 ACA Penalty Risk for not offering health insurance coverage, or offering coverage that is not affordable or minimum value, to your ACA full time employees
  • This value cannot be greater than the total number of ACA full time employees
$XX,XXX
This is how much our ACA Potential Penalty tool estimates your penalty risk could be.*
XXX%
Calculated ‘Minimum Essential Coverage’ Percentage*

*Potential penalties are only an estimate, and this estimate does not guarantee that this amount or any amount of ACA penalties will actually be incurred.

This calculator assumes 12 full months of penalties per affected employee, however, actual penalties are incurred by month.

The A-Penalty is triggered when an employer fails to offer minimum essential coverage to at least 95% of their benefit eligible employees, and one benefit eligible employee seeks coverage on the exchange and is eligible for a premium subsidy. This penalty is assessed on the entire benefit eligible population minus 30 employees (prorated across companies who are members of a controlled group).

The B-Penalty is triggered when an employer offers minimum essential coverage to at least 95% of their benefit eligible employees, but some of those offers of coverage fail to be affordable or meet minimum value requirements. This penalty is assessed on each benefit eligible employee who seeks coverage through the exchange and is eligible for a premium subsidy.

The information provided is intended as general guidance and is not intended to convey any tax, benefits, or legal advice. For information pertaining to your company and its specific facts and needs, please consult your own tax advisor or legal counsel.

Source: https://www.irs.gov/affordable-care-act/employers/questions-and-answers-on-employer-shared-responsibility-provisions-under-the-affordable-care-act