IRS Rev. Proc. 2023-17: Adjustments Under Section 4980H to Calculate 2024 Employer Shared Responsibility Payments

May 25, 2023
Hall Benefits Law, LLC

The Internal Revenue Service (IRS) has released IRS Rev. Proc. 2023-17, which provides indexing adjustments for the applicable dollar amounts under § 4980(H)(a) and (b)(1). These indexed amounts are necessary to calculate the employer-shared responsibility payments (ERSP) under these sections. This revenue procedure is effective for taxable and plan years beginning after December 31, 2023.

The IRS based on the 2024 indexing adjustments to the dollar amounts on the premium adjustment percentage that the U.S. Department of Health and Human Services (HHS) published on December 12, 2022, using the most recent National Health Expenditure Accounts (NHEA) income and premium data. Any increases not a multiple of ten are rounded to the next lowest multiple of ten. As a result, for the calendar year 2024, the adjusted $2,000 amount under § 4980H(c)(1) is $2,970, and the adjusted $3,000 amount under § 4980H(b)(1) is $4,460.

HBL has experience in all areas of benefits and employment law, offering a comprehensive solution to all your business benefits and HR/employment needs. We help ensure you are in compliance with the complex requirements of ERISA and the IRS code, as well as those laws that impact you and your employees. Together, we reduce your exposure to potential legal or financial penalties. Learn more by calling 470-571-1007.

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Hall Benefits Law, LLC

HBL offers employers comprehensive legal guidance on benefits in mergers and acquisitions, Employee Stock Ownership Plans (ESOPs), executive compensation, health and welfare benefits, healthcare reform, and retirement plans. We counsel a wide spectrum of clients including small, mid-sized, and large companies, 401(k) investment advisors, health insurance brokers, accountants, attorneys, and HR consultants, just to name a few. HBL is passionate about advising clients, and we are dedicated to our mission: to provide comprehensive, personalized, and practical ERISA and benefits legal solutions that exceed client expectations.

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