$5,670: the 2027 “B” penalty and the unaffordable-coverage trigger.

For 2027 the IRS set the section 4980H(b) amount at $5,670 a year, or $472.50 a month, for each full-time employee who receives a premium tax credit.

This is the penalty that unaffordable or non-minimum-value coverage can trigger. Send us your renewal and we will give you a second opinion in writing.

What to know

Three things to know about the “B” payment.

What triggers it

An employer that offers coverage to at least 95% of full-time employees can still owe the “B” payment if an employee’s offer is unaffordable or does not provide minimum value and the employee receives a premium tax credit (IRC §4980H(b)).

It is capped

The total “B” payment for a year cannot exceed what the “A” payment would have been, which keeps the exposure bounded. Know both numbers for your size.

Why affordability matters

Only employees who get a premium tax credit generate the payment, and the affordability test is what decides whether they can. That is why the 10.22% line matters when you set contributions.

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 how the affordability test works.

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(b). This page is general information, not legal or tax advice.

Let’s Get to Work

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