FYI No employer with fewer than 50 full-time employees, including full-time equivalents (FTEs), is subject to the Employer Shared Responsibility Payment, regardless of whether they offer health insurance to their employees.

Some employers with 50 or more FTE employees who don’t offer insurance, or whose offer of coverage is not affordable or doesn’t meet certain minimum standards, are subject to Employer Shared Responsibility provisions. They may owe a payment if at least one of their full-time employees enrolls in a plan through the Health Insurance Marketplace and receives a premium tax credit.

The Internal Revenue Service offers detailed questions and answers about the Employer Shared Responsibility provisions, including information on which employers may be liable for a payment, how the payment is calculated, and more.

The Treasury Department has a fact sheet summarizing 2015 changes to the Employer Shared Responsibility provisions.

Have questions about the health care law impacts your business? Call the ACA Employer Call Line at 1-800-355-5856.

More answers:

How will I know if one of my employees enrolled in a Marketplace plan and qualified to use premium tax credits?

You’ll get a notice from the Marketplace if one or more of your employees enrolled in a health plan through the Health Insurance Marketplace, was found eligible for premium tax credits, and on their application they stated one of the following:

  • Your company didn’t offer them health insurance
  • You offered them health insurance but it wasn’t affordable or didn’t provide minimum value
  • They were in a waiting period before they can enroll in your health plan

The notice doesn’t say you owe the Employer Shared Responsibility Payment. It says you may have to pay it if certain other conditions apply. Only the IRS can determine if you have to pay.

Can I appeal a decision that I owe the Employer Shared Responsibility Payment?

In some cases, yes. See "Decisions employers can appeal" for information and links to appeals forms.