---
title: Employer ACA penalties increase for 2027
description: ALEs need to stay informed about increased ACA penalties for 2027. Ensure compliance to avoid costly fines.
---

[Bukaty Bulletins](https://insights.bukaty.com/bulletins)

# [Employer ACA penalties increase for 2027](https://insights.bukaty.com/bulletins/employer-aca-penalties-increase-for-2027)

 Written by [Bukaty Companies](https://insights.bukaty.com/bulletins/author/bukaty-companies) | May 6, 2026

This month the IRS [released](https://www.irs.gov/pub/irs-drop/rp-26-22.pdf?utm_campaign=HCR%20bulletins&utm_source=hs_email&utm_medium=email&_hsenc=p2ANqtz--bfjR2ctHNCAG8cGFK4gzhDj1yeLDpVq5BfTFb5CsmKswsRjtBF-lde8mi_JOpAV78XVU8) 2027 penalty amounts assessed when applicable large employers (ALEs) - those with at least 50 full-time employees, including full-time equivalent (FTE) employees - fail to comply with coverage and affordability requirements of the Affordable Care Act (ACA). 

These penalties are determined based on annual IRS Forms 1094-C and 1095-C, which are filed with the IRS after the end of each calendar year.

**4980H(a) penalty**  
Employers that don’t provide minimum essential coverage (MEC) to at least 95% of eligible employees and their dependents are subject to the 4980H(a) penalty if at least one full-time employee receives subsidized coverage through an ACA Exchange. For 2027, the penalty is $3,780 per full-time employee, calculated based on the employer’s total full-time employee count minus 30.

**4980H(b) penalty**  
Employers that offer MEC to substantially all full-time employees but fail to meet affordability or minimum value requirements may be subject to the 4980H(b) penalty. For 2027, the penalty is $5,670 for each full-time employee who receives subsidized coverage through an ACA Exchange.

Careful planning and knowledge of ACA requirements can eliminate penalty risks. For questions, consult with your Bukaty benefits consultant.

| **Year** | **4980H(a) penalty amount** | **4980H(b) penalty amount** |
| --- | --- | --- |
| 2027 | $3,780 annually / $315 monthly | $5,670 annually / $472.50 monthly |
| 2026 | $3,340 annually / $278.33 monthly | $5,010 annually / $417.50 monthly |

 

[View full post](https://insights.bukaty.com/bulletins/employer-aca-penalties-increase-for-2027)

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