2018 Employer Shared Responsibility Penalties
Each year the employer shared responsibility (ESR) penalty amounts are adjusted for inflation. The calculation of the employer payment is not a flat annual amount; it is calculated on a monthly basis. Additional details regarding ESR penalty amounts are available in the HHS Notice of Benefit and Payment Parameters for 2018.
Employers who do not offer at least minimum essential coverage (MEC) to at least 95% of their full-time employees, may be subject to the “A” (no offer) penalty, if at least one of the full-time employees gets coverage in the Health Insurance Marketplace and receives a subsidy.
Employers who offer coverage that is not considered affordable to one or more employees or coverage does not meet minimum value (MV) requirements, may be subject to the “B” (unaffordable) penalty.