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Basic Penalty Structure

Basic Penalty Structure

Penalties for the employer-shared responsibility mandate are collected through an IRS process.

  • When calculating penalties, use only full-time employees (not full-time equivalents)
  • Full-time equivalents are only used in the classification of an “applicable large employer”

The penalties set forth by the employer mandate are complex. To determine exactly how these penalties will impact your business, contact your tax or legal advisor.

For additional assistance with determining whether your business will be subject to a penalty, follow this flowchart:employer mandate basic penalty chart