$3,780: the 2027 “A” penalty, and when it applies.

For 2027 the IRS set the section 4980H(a) amount at $3,780 a year, or $315 a month, per full-time employee after the first 30.

It applies only if an employer fails to offer coverage to at least 95% of its full-time employees and at least one of them receives a premium tax credit. Send us your renewal and we will give you a second opinion in writing.

What to know

Three things to know about the penalty.

When it applies

The “A” payment is triggered by not offering minimum essential coverage to enough full-time employees, not by unaffordable coverage. See the “B” payment for that.

How it is figured

The amount is multiplied by the number of full-time employees minus 30, so a larger workforce pays more, and it is assessed monthly (IRC §4980H(a)).

What to check

Count how many full-time employees were offered coverage each month. A gap in offers, such as missed waiting periods or variable-hour staff, is what creates the exposure.

Keep reading.

The guide

The 2027 ACA Affordability Percentage: Employer Guide

What the IRS changed for 2027 and what to check before open enrollment. Back to the guide.

Next step

Read about variable-hour employees.

Sources

Where these figures and rules come from.

Sources

Figures and rules

IRS Rev. Proc. 2026-26 (2027 affordability percentage of 10.22%, up from 9.96% for 2026) and Rev. Proc. 2026-22 (2027 employer shared responsibility payment amounts). IRC §4980H(a). This page is general information, not legal or tax advice.

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