If an employer does not provide coverage, provides coverage that does not offer minimum value, or provides coverage that is unaffordable, then the employer must make a per-employee, per-month “Employer Shared Responsibility Payment.” The IRS will provide the employer with a notice about the payment. Employers will not be required to include the Employer Shared Responsibility payment on any tax return that they file.
If an employer owes the fee because the employer didn’t cover workers, it is a flat $2,000 per full-time employee (excluding first 30 employees). If only a few employees end up with unaffordable coverage or if that coverage doesn’t meet minimum value standards, it’s $3,000 per full-time employee who got cost assistance (but, never more than $2,000 per full-time employee). The fee is always per month, so it is always 1/12 of those annual totals for each month.