Generally, the Affordable Care Act (?Ç£ACA?Ç¥) requires group health plan coverage sponsored by large employers to be ?Ç£affordable?Ç¥ in order to avoid certain penalties. ?Ç£Affordability?Ç¥ is based on whether the premium for employee-only coverage is less than a certain percentage of an employee?ÇÖs household income or an applicable safe harbor amount. In Notice 2019-29, the IRS announced that the affordability percentage for 2020 would decrease to 9.78% from 9.86% in 2019. Employers should note this change as they set premiums for 2020.
Notice 2019-29 is available here.