Regulatory Updates
Regulatory Updates provide quick access to employee benefit regulations, rulings and other guidance released by governmental agencies in the U.S. and Canada.
New updates to this page may be included in Today’s Headlines which is emailed to International Foundation members each business day. Inquiries regarding these updates should be directed to the Benefits Knowledge Center at the International Foundation at (888) 334-3327, option 5 or [email protected].
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IRS Announces Decreases for Employer Shared Responsibility Payments for 2025
Feb 12, 2024, 06:00
by
Amanda Wilke
The Internal Revenue Service (IRS) issued Revenue Procedure 2024-14 providing the indexing adjustment for the applicable dollar amounts under § 4980H(c)(1) and (b)(1) of the Internal Revenue Code. The indexed amounts are used to calculate the employer shared responsibility payments (ESRP) under § 4980H(a) and (b)(1), respectively.
The Revenue Procedure provides that the applicable premium adjustment percentage is 1.4519093322.
For calendar year 2025:
- The adjusted amount penalty for purposes of Section 4980H(a) of the Code is $2,900 (a $70 decrease from 2024).
- The adjusted amount penalty for purposes of Section 4980H(b) of the Code is $4,350 (a $110 decrease from 2024).
The Revenue Procedure is effective for tax years and plan years beginning after December 31, 2024.