8870 / If an employer is subject to the shared responsibility provisions, but all of its employees obtain other health coverage, is that employer still required to offer health coverage?

Yes, an applicable large employer remains subject to the shared responsibility provisions even if all of its employees obtain coverage from other sources. However, the employer will only be required to pay the shared responsibility penalty if one or more of its employees receives a premium tax credit for purchasing individual health coverage. The shared responsibility penalty is calculated based on the number of full-time employees for the month in which an employee receives the premium tax credit.¹

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1. IRC 4980H(a)(2).