Employer Mandate and Individual Mandate Penalties


Two of the key components the GOP is looking to eliminate are the individual and employer mandates. The individual mandate would impose penalties on individuals for not having health insurance, and the employer mandate would penalize Applicable Large Employers for not offering affordable insurance with minimum coverage to qualified full-time employees.

The IRS indicated in a series of information letters that it won’t waive the penalties for individuals and employers. These letters were created in response to questions from taxpayers. The consistency of these letters offers a clear indication of the IRS’ position on penalty enforcement. The IRS explains that “nothing in the ACA allows the agency to waive employer shared-responsibility payments; taxpayers remain subject to the law and must pay what they owe.”  The letters emphasize that “no waivers are available under the law, including for financial or religious reasons. “