[firm] blog logo

IRS Decreases ACA Employer Affordability Percentage for 2020

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.

IRS Increases ACA Employer Affordability Percentage for 2019

Generally, the Affordable Care Act (the ?Ç£ACA?Ç¥) requires coverage under a group health plan sponsored by an ?Ç£applicable large employer?Ç¥ (at least 50 full-time equivalent employees) to be ?Ç£affordable?Ç¥, as determined under the ACA, in order to avoid certain ACA 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 a designated safe harbor amount. The IRS has increased the affordability percentage for 2019 to 9.86 percent, up from 9.56 percent in 2018.

September 2022
S M T W T F S
 123
45678910
11121314151617
18192021222324
252627282930  

Archives