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IRS Raises ACA Mandate Penalties for 2022

The IRS penalty amounts for non-compliance of the ACA’s Employer Mandate are rising in 2022.  Below is a list of the new penalty amounts and how the IRS will assess them.  4980H(a) Penalty For the 2022 tax year, the 4980H(a) penalty amount is $229.17 a month or $2,750 annualized, per employee. The IRS issues the 4980H(a) penalty when: An employer doesn’t offer Minimum Essential Coverage (MEC) to at least 95% of its full-time employees (and their dependents) for any month during the tax year, and  At least one full-time employee receives a Premium Tax Credit (PTC) for purchasing coverage through the Marketplace. Here’s an illustration of how the IRS calculates the penalty: If an organization in 2022has 300 full-time employees, and one of these employees receives a PTC for 12 months,… Read More

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