IRS Announces Decreases for Employer Shared Responsibility Payments for 2025

Published February 12, 2024

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.