Surviving Spouses and the ACA Employer Mandate Penalties

Questions often arise as to whether an applicable large employer (ALE) will become subject to ACA employer mandate penalties for failure to offer health coverage to an employee's spouse.  The short answer is that no, an ALE will not be penalized for declining to extend health coverage to employees' spouses.  ALEs are required to offer qualifying health coverage to employees and their dependents.  "Dependents" for this purpose are defined to include an employee's children who are under the age of 26 years old.  Penalties would not apply for declining to cover spouses even if an employee's spouse receives a premium tax credit for subsidized health coverage on the health insurance marketplace.  For more information on the ACA employer mandate, visit Tax Facts Online. Read More: Link to Q8871.  Note: Q is updated.