If you’re an applicable large employer (ALE) in 2024—you had 50 or more full-time and full-time equivalent employees in 2023—you must provide affordable minimum essential health coverage or pay a penalty. For 2024, the IRS announced the penalties for ALEs that don’t offer such coverage: the Part A penalty will be $2,970 multiplied by the number of full-time employees (reduced by the first 30 such employees). The Part B penalty will be $4,460 for each full-time employee who is not offered minimum essential coverage, offered unaffordable coverage, or offered coverage that does not provide minimum value and obtains coverage through a government Marketplace with the premium tax credit. #IdeaoftheDay
Barbara Weltman
Big Ideas for Small Business, Inc.
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