Considering health coverage offers or the lack there-of, assessable payments are broken down into what have often been called the A Penalty and the B Penalty. Both are triggered by an employee qualifying for a subsidy at a health marketplace exchange.
⦁ §4980H(A)
⦁ To avoid a potential assessable penalty under §4980H(a), employers can offer 95% of their full-time employees at least MEC
⦁ The penalty triggered is not solely for the one individual who qualified for a subsidy, but effectively flares up to all of the full-time employees in the company, even if some of them were offered coverage on time
⦁ (Number of FT Employees – 30) x (1/12th) ($2,260) each calendar month
⦁ §4980H(B)
⦁ To avoid a potential assessable penalty under §4980H(b), employers can offer affordable coverage providing MV to their full-time employees
⦁ (Number of FT employees certified to the employer as received a premium tax credit – 30) x (1/12th) ($3,240) each calendar month
⦁ An employer who has been assessed 4980H(A) cannot receive any penalty under 4980H(B)