"The 'sledgehammer' penalty applies when an ALE fails to offer Minimum Essential Coverage (MEC) to at least 95% of its Full-Time Equivalent employees (FTEs) as defined by the ACA in any given calendar month. The penalty is $278.33 per month ($3,340 per year) and is multiplied by all FTEs (minus the first 30).... Coverage is considered affordable as per the Section 4980H(b) 'tack hammer' penalty if the required employee contribution satisfies at least one of the three safe harbors. The 2026 'tack hammer' penalty is levied at $417.50 per month ($5,010 per year) for each applicable FTE."  MORE >>