Applicable large employers that do not offer minimum essential coverage to substantially all (70% in 2015 and 95% in 2016) of their full-time employees may be subject to a penalty under IRC Sec. 4980H(a), if at least one employee enrolls in individual coverage through a state insurance marketplace and receives a premium tax credit or cost-sharing subsidy. Employers that offer minimum essential coverage that is unaffordable and/or does not meet certain minimum value requirements may be subject to a penalty under IRC Sec. 4980H(b) if an employee receives a premium tax credit or cost-sharing subsidy. In its monthly Payroll Industry conference call, the IRS projected the annual per-employee Section 4980H(a) penalty to be $2,080 for 2015 and $2,160 for 2016 and the annual per-employee Section 4980H(b) penalty to be $3,120 for 2015 and $3,240 for 2016.