Opinion ID: 223249
Heading Depth: 4
Heading Rank: 1

Heading: Calculation of Penalty Amount

Text: The penalty amount depends on whether the employee went to the Exchange because the employer's plan (1) was not minimum essential coverage or (2) was either unaffordable or did not provide minimum value. The penalty translates to $2,000 to $3,000 per employee annually. Id. § 4980H. An employer that does not offer minimum essential coverage to all full-time employees faces a tax penalty of $166.67 per month (one-twelfth of $2,000) for each of its full-time employees, until the employer offers such coverage (subject to an exemption for the first 30 full-time employees). Id. § 4980H(a), (c)(1), (c)(2)(D). This particular penalty applies for as long as at least one employee, eligible for a premium tax credit or a subsidy, enrolls in a qualified health plan through an Exchange. Id. In the unaffordable coverage [57] or no minimum value scenarios, the employer faces a tax penalty of $250 per month (one-twelfth of $3,000) for each employee who (1) turns down the employer-sponsored plan; (2) purchases a qualified health plan in an Exchange; and (3) is eligible for a federal premium tax credit or subsidy in an Exchange. [58] Id. § 4980H(b)(1).