Under the Affordable Care Act, Applicable Large Employers (ALEs) — generally those with 50 or more full-time employees — must offer affordable, minimum-value health coverage to at least 95% of their full-time employees and dependents. Employers that fail to meet these requirements may face penalties under Internal Revenue Code §4980H. The §4980H(a) penalty applies when too few employees are offered coverage, while the §4980H(b) penalty applies when coverage is offered but isn’t affordable or doesn’t meet minimum value standards.
This calculator estimates potential 2026 penalties based on your full-time employee count, the months coverage was offered, and how many employees received Premium Tax Credits (PTCs). It’s an educational tool to help employers understand how the ESRP penalties are calculated — not legal or tax advice.
NOTE: A penalty only applies for months when at least one employee receives a premium tax credit. An ALE could offer no coverage all year long and not incur a penalty if no full-time employee receives a premium tax credit.
Employer Shared Responsibility Penalty Estimator — 2026 Calendar Year
Estimates potential Affordable Care Act §4980H penalties for applicable large employers (ALEs) using 2026 indexed amounts ($3,340 for §4980H(a) and $5,010 for §4980H(b)). Results are educational; actual IRS assessments are month-by-month and reported in 2027 on Forms 1094-C/1095-C.