The Affordable Care Act’s “pay or play” mandate goes into effect starting in 2014.  Under the mandate, large employers (employers with 50 or more full-time employees) must either provide health coverage to their employees or pay an excise tax.  The chart below shows when the “pay or play” penalty applies and how to calculate the penalty.  A printer-friendly version of the chart is available here.  (For information about other requirements under the Affordable Care Act and their associated penalties, see our Health Reform website.)

For more information regarding the employer mandate, please see “IRS Proposes Shared Responsibility Tax Rules for Employers” at