IRS to increase employers' health coverage 'pay-or-play' penalties 13%

By Allison Bell

News May 05, 2026 at 04:15 PM

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What You Need To Know

The new IRS guidance affects employer efforts to comply with the federal Affordable Care Act.
If an employee qualifies for ACA premium subsidies, the employer may have to pay a penalty.
The guidance will increase one type of penalty to $3,780 and the other to $5,670.

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