Compliance & legal
ESR (Employer Shared Responsibility)
The ACA provision requiring "applicable large employers" (50+ FTEs) to offer affordable, minimum-value coverage to full-time employees or pay a penalty. Two penalties: A Penalty (for not offering coverage to enough employees) and B Penalty (for offering unaffordable coverage). 2026 B Penalty is $417.50/month per affected employee.Last reviewed: · TMRW Benefits is a benefits brokerage, not a tax or legal advisor. Consult a CPA or attorney for situation-specific guidance.
Related terms
ALE (Applicable Large Employer)
Employer with 50+ FTEs. Subject to ESR rules.
Read definitionACA (Affordable Care Act)
2010 federal law restructuring U.S. health insurance markets.
Read definitionICHRA (Individual Coverage HRA)
Employer reimburses for individual insurance. No size limits.
Read definitionMore in Compliance & legal
ERISA (Employee Retirement Income Security Act of 1974)
Federal law governing most private-sector benefit plans.
COBRA (Consolidated Omnibus Budget Reconciliation Act)
Continue group coverage up to 18-36 months after losing eligibility.
ACA (Affordable Care Act)
2010 federal law restructuring U.S. health insurance markets.
HIPAA (Health Insurance Portability and Accountability Act of 1996)
Federal law protecting health information privacy.
Section 125 (Cafeteria plan)
IRS code allowing pre-tax benefits payments.
Premium-only plan (POP)
Simplest Section 125 plan. Pre-tax premiums only.
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