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2015 Tax Penalties for Individuals and Small Businesses

2015 Tax Penalties for Individuals and Small BusinessesApril 15th, 2016 – Due to the Affordable Care Act’s individual mandate, every American must be covered by a health insurance policy that complies with the ACA’s Minimum Essential Coverage coverage requirements.

The 2015 tax penalty for non-compliance is $325 per adult and $162.50 per child, or 2% of household income, whichever is greater. In 2016, the penalty increases to $695 per adult and $347.50 per child, or 2.5% of household income, whichever is greater.

For employers, starting in 2015, companies with 100 or more full-time employees (working 30+ hours per week) are required to provide health insurance to most of their workers, and expanding to companies with more than 50 employees beginning this year.

Companies that cannot don’t comply typically face a tax penalty of $2,000 per full-time employee (excluding the first 30 employees), but it’s more complicated than that and please consult a tax professional and the IRS website for more information.

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