Employer shared responsibility payment
In accounting, employer shared responsibility payment means what an ALE owes the IRS when a full-time employee gets a premium tax credit on the Marketplace: under §4980H(a), for not offering coverage to 95% of full-time employees, $3,340 a year for 2026 per full-time employee minus 30; under §4980H(b), for coverage that was unaffordable or not minimum value, $5,010 a year for 2026 per credited employee, capped at the (a) amount.
Also called Section 4980H payment.
Authority: IRC §4980H; Rev. Proc. 2025-26 (opens in a new tab). Sources
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- ACA fine for the individual mandate
- penalty for not offering insurance at any size
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