IRS Provides Indexing for Employer Shared Responsibility Payments

The IRS has issued Revenue Procedure 2023-17 announcing the 2024 indexed adjustments to the amounts used to calculate employer shared responsibility payments under Internal Revenue Code Sections 4980H(a) and 4980H(b)(1). 

An applicable large employer is liable for a shared responsibility payment under 4980H(a) if they fail to offer minimum essential coverage to 95 percent of full-time employees (and dependents) and at least one full-time employee receives a premium tax credit for purchasing coverage through the Marketplace. An employer is liable for a shared responsibility payment under IRC section 4980H(b)(1) if the coverage they offer is not affordable or does not provide minimum value and at least one full-time employee receives a premium tax credit for purchasing coverage through the Marketplace.    

Amounts for 2024 are as follows

• the penalty under 4980H(a) is increased to $2,970 per full-time employee, and
• the penalty under IRC 4980H(b)(1) is increased to $4,460 per full-time employee who receives the premium tax credit through the Marketplace.