Employer Mandate
Use this guide to see if your business is required to offer affordable health insurance to your employees and about penalties for non-compliance
under the Affordable Care Act.
Business has less than 50 full-time eligible employees
Business has 50 or more full-time eligible employees
Yes
No
Yes
No
Do you offer group health insurance to your employees?
Do you offer group health insurance?
Do you offer group health insurance?
Tax subsidy not used by any full-time eligible employee in the Public Exchange
There is no penalty
Tax subsidy is used by at least one full-time eligible employee in the Public Exchange
Penalty of $2,000 per employee per year, excemption for first 30 employees
Tax subsidy is used by at least one full-time eligible employee in the Public Exchange because plan does not pass Affordability Test
Penalty of $3,000 per employee per year for each full-time employee receiving tax subsidy
Tax subsidy not used by any full-time eligible employee in the Public Exchange
Employee
elects group plan
Employee
rejects group plan
There is no penalty
There is no penalty
Employee buys individual health insurance policy with no tax subsidy
Employee decides to have no health individual and pay individual penalty
There is no penalty
