The IRS has recently released Rev. Proc. 2026-22. This document provides calculations for the ACA penalties an employer may incur in 2027.

- The “A” penalty has been adjusted to $3,780 (up from $3,340 in 2026). The “A” penalty is triggered when an Applicable Large Employer does not offer “substantially” all of its full-time employees Minimum Essential Coverage AND at least one employee receives a government subsidy to purchase health insurance on the individual exchange. This penalty is multiplied by the number of full-time employees an employer has (minus the first 30).

- The “B” penalty has been adjusted to $5,670 (up from $5,010 in 2026). The “B” penalty is triggered when an Applicable Large Employer offers Minimum Essential Coverage to substantially all full-time employees, but that coverage is either unaffordable (exceeds the 2027 affordability percentage) or does not provide a minimum value (60%), and one employee receives a subsidy in the Exchange. This penalty is multiplied by the number of employees who receive a subsidy to purchase health insurance on the individual exchange.

You can read the entire IRS Rev. Proc. HERE.