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![[Video] ACA Penalties 2025 Explained: What Every Employer Needs to Know](https://www.combinedhcm.com/hubfs/ACA%20Penalties%202025%20Explained%20What%20Every%20Employer%20Needs%20to%20Know.jpg)
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The IRS has released updated ACA “pay-or-play” penalties for 2025 — and while the dollar amounts have technically decreased, the risk for employers has not. Failing to offer or report qualifying coverage could still cost thousands in fines.
ACA Penalties 2025: What Employers Need to Know
What Is the ACA Pay-or-Play Rule?
Under the Affordable Care Act, Applicable Large Employers (ALEs) must:
- Offer affordable, minimum-value health coverage to full-time employees, and
- Accurately report that coverage to the IRS.
Miss either one, and you could trigger steep IRS penalties.
New ACA Penalty Amounts for 2025
- $2,900 per employee if coverage is not offered (Section 4980H(a) penalty)
- $4,350 per employee if coverage is unaffordable or lacks minimum value (Section 4980H(b) penalty)
Even small reporting or affordability errors can add up fast.
How Employers Can Stay ACA Compliant
The best defense is proactive planning. Audit your ACA data, review affordability thresholds, and ensure your reporting systems are accurate and up to date.
ACA compliance doesn’t have to be overwhelming. Join our free webinar on ACA Filing and Compliance to learn how to simplify reporting, avoid costly mistakes, and stay ahead of deadlines.
This video is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Viewers should contact legal counsel for legal advice.
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