Although we are still early into 2024, the United States Department of Labor has decided on the penalty amounts for certain ACA violations for calendar year 2025:

- The “A” penalty has been adjusted to $2,900. 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 $4,350. 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 8.39% of employees’ wages) 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.