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Small Business Employee Benefits and HR Blog

Penalties for Employers Not Offering Coverage in 2015 and 2016 [Flowchart]

A common question from employers of all sizes is: What are the penalties for not offering health coverage? This simple flowchart provides a resource to understand the Affordable Care Act's penalties for not offering coverage in 2015 and 2016.

Penalties for Employers Not Offering Coverage - Flowchart

The Affordable Care Act (ACA) does not require employers to provide health coverage to their employees, but larger employers face penalties if they don’t make affordable coverage available. This provision of the ACA is commonly referred to as the "employer shared responsibility" or the "employer mandate."

This simple flowchart by Kaiser Family Foundation (KFF) illustrates which employers may face penalties for not offering coverage, when the penalties apply, and the amount of the penalties.

Note: The flowchart simplifies the "transition relief," which provides leniency to employers in the first year (2015). For more information on the transition relief, read this article.

employer-penalties-aca-flowchart-20141124

Source: kff.org

What questions do you have about the penalties for employers not offering coverage? Leave a comment below.

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