The ACA Employer Mandate
Penalty for non-compliance
The Affordable Care Act requires that everyone have qualified insurance coverage through an employer policy or an individual policy. Accordingly, if your employees don’t have insurance coverage, a penalty will apply.
How much is the penalty?
If you have 50 or more full-time equivalent employees, and do not offer health coverage to them, you may owe a tax penalty. Accordingly, this applies when at least one employee receives a premium tax credit/cost sharing subsidy in the exchange. Thus, when this occurs, a penalty of $2,000 annually multiplied by the number of full-time employees applies (excluding the first 30 employees). Moreover, the penalty is increased each year by the growth in insurance premiums.