PENALTIES FOR NON COMPLIANCE
EMPLOYERS: Employers who have more than 50 full-time equivalent employees must offer those employees benefits that pays for 60% of the minimum essential benefits. The penalty will apply when at least one employee receives a premium tax credit in the exchange. As a result, your penalty will be $2,000 per year multiplied by the number of full-time employees, and excludes the first 30 employees. The penalty is increased each year by the growth in insurance premiums.
INDIVIDUALS: The penalty may also affect individuals who fail to obtain qualifying health insurance. Individuals can have coverage through their employer, or through an individual policy to satisfy the requirement. If you do not have qualifying health insurance, the tax penalty will be $695 for adults. Additionally, the penalty is $347.50 for each child. However, the maximum family penalty is the greater of 2.5% of income, or three times the adult penalty, which is $2,085. Accordingly, your penalty will be applied on your annual tax return.