January 31, 2018
Under the Affordable Care Act’s so-called “play or pay” mandate, large employers face penalties if they do not offer healthcare coverage that is affordable and that provides minimum value to the vast majority of their workforce. The penalty, referred to as the employer shared responsibility payment, can be significant (as much as $3,000 per employee).
This means even employers with just a few hundred workers could be looking at penalties approaching $1 million a year. Larger employers could be exposed to tens of millions or more in penalties.