On March 9, the IRS announced the 2024 Affordable Care Act (ACA) employer mandate penalties, applicable to employers with 50 or more full-time equivalent employees (ALEs), will increase. For the 2024 reporting year, the A Penalty (IRC Section 4980H(a)) will be $2,970 (which represents a $90 increase from 2023) and the B Penalty (IRC Section 4980H(b)) will be $4,460 (which represents a $140 increase from 2023). These employer mandate penalties will still be calculated monthly. Therefore, the monthly penalty is equal to the above-mentioned annual penalties, divided by 12.

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