The penalty depends on whether the employer doesn't offer coverage at all, or offers coverage that either isn't affordable and/or doesn't provide minimum value. And the dollar amount that's used to calculate each penalty is inflation adjusted each year (see question 55 in this IRS guidance). Here's how it works for 2023: If the employer doesn't offer coverage at all and at least one full-time employee obtains a subsidy in the exchange, the penalty is calculated by taking the total number of full-time employees the business has, subtracting 30, and multiplying the result by $2,880. If the employer offers coverage but it isn't affordable and/or doesn't provide minimum value, the penalty is calculated by determining how many employees received subsidized coverage in the Marketplace, and multiplying that number by $4,320. But the amount of this penalty will never be higher than the penalty that would apply if the employer didn't offer coverage at all, so the first calculation is used instead if it would be a smaller penalty.