The IRS updated its Affordable Care Act guidance to take into account cost of living adjustments to ACA penalties. Question/Answer 55 was changed to reflect the 2021 penalty amount of $2,700 (an increase from $2,570 for 2020) for an applicable large employer who fails to offer minimum essential coverage to at least 95% of its full-time employees. The penalty amount that applies when an Ale offers minimum essential coverage to full-time employees but the coverage is either unaffordable or does not provide minimum value will be $4,060 in 2021 (an increase from $3,860 in 2020).
Question/Answer 40 was also changed to reflect the increase in the affordability percentage to 9.83% starting in 2021.
The Affordable Care Act Q&As may be accessed by clicking here.
