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

Employer

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