IRS releases 2024 indexed applicable dollar amounts for ESRPs

The IRS recently issued Revenue Procedure 2023-17, providing indexing adjustments for the applicable dollar amounts used in calculating the employer shared responsibility payments (ESRPs) under Sections 4980H(a) and (b)(1).

For the calculation of the 2024 benefit year payment parameters, the applicable premium adjustment percentage is 1.4899877401%. Thus, for tax years and plan years beginning after Dec. 31, 2023:

The adjusted $2,000 amount under Section 4980H(a) is $2,970 ($2,000 x 1.4899877401 = $2,979.9754802 rounded down to $2,970), and
The adjusted $3,000 amount under Section 4980H(b)(1) is $4,460 ($3,000 x 1.4899877401 = $4,469.9632203 rounded down to $4,460).

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Jeff Martin

Partner, Washington National Tax Office

+1 202 521 1526

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