The Employer Shared Responsibility Payment

The Employer Shared Responsibility Payment applies to some businesses with 50 or more full-time employees who don't offer insurance, or whose coverage doesn't meet certain minimum standards.

Regulations announced in 2014 have updated the following:

  • Which employers must make the payment

  • Which years some employers must begin making the payment

  • Other conditions about the payment

The Internal Revenue Service offers detailed questions and answers about the Employer Shared Responsibility Payment.

The Treasury Department has a fact sheet summarizing recent updates on the Employer Shared Responsibility Payment.

No employer with fewer than 50 full-time employees is subject to the Employer Shared Responsibility Payment in any year.

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

More answers

How can I learn more about large businesses and the health care law?

Several other parts of the law affect businesses with 50 or more employees. Visit the Small Business Administration’s website to learn more.

What if I offer insurance but my employees don't take it?

If you offer coverage that meets minimum value and is affordable to your full-time employees, you won't be subject to the Employer Shared Responsibility payment. It doesn't matter if they enroll in it or not.

How are seasonal employees counted?

The Internal Revenue Service has information on this topic in its Q&A about the Employer Shared Responsibility payment (See question 4).