'Pay or Play' Penalty and Affordability Amounts

2017 'Pay or Play' Penalty and Affordability Amounts Announced

The IRS has updated its existing Q&As on the Affordable Care Act's employer shared responsibility ("pay or play") requirements to reflect adjustments to the pay or play penalty and affordability amounts.

Those adjustments are as follows:

  • For calendar year 2017, the applicable per-employee dollar penalties of $2,000 and $3,000 are adjusted to $2,260 and $3,390, respectively.
  • For plan years beginning in 2017, the affordability threshold for purposes of both the pay or play affordability safe harbors and the premium tax credit provisionsĀ is 9.69%.

The Q&As also address what counts as an "offer of coverage" for purposes of pay or play compliance. Click here to view the Q&As in their entirety.


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