IRS releases ACA employer payments for 2025

The IRS recently issued Revenue Procedure 2024-14, providing the applicable dollar amounts used in 2025 for calculating the employer shared responsibility payments (ESRPs) for employee health insurance under Sections 4980H(a) and (b)(1).

ESRPs are levied against certain employers that do not offer employees health coverage meeting specific ACA requirements. The amount of the ESRPs is adjusted annually. For the calculation of the 2025 benefit year payment parameters, the applicable premium adjustment percentage is 1.4519093322%. Thus, for tax years and plan years beginning after Dec. 31, 2024:

The adjusted $2,000 amount under Section 4980H(a) is $2,900.
The adjusted $3,000 amount under Section 4980H(b)(1) is $4,350.

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Jeff Martin

Partner, Washington National Tax Office
Grant Thornton Advisors LLC

Washington, D.C.

+1 202 521 1526

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