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 provisions 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.

Check out our Pay or Play section within the Client Resource Center HR Library for step-by-step guidance, worksheets, and calculators that can help employers understand whether they will be subject to a penalty, and how to calculate it.

2 months ago byin IRS , Play or PayYou can follow any responses to this entry through the | RSS feed. You can leave a response, or trackback from your own site.