Please advise the proper answer to 4980H Affordability Safe Harbor. At the moment the coverage was offered the lowest pay in our company was $ 19,780.00 per year and the cheapest insurance plan we offer is set at $ 36.358 per week or $ 1,890.62 per year.
According to guidelines listed on the form it should be not more than 9.5% of FPL (which is $ 1,118.15 per year) or 9.5% of annual pay (which is $1,879.10). As it shows our charge for the cheapest insurance plan exceeds the max limit of affordability by $ 11.52 therefore we do not qualify for 4980H Affordability Safe Harbor.
Please advise if my calculations and understanding of this matter is correct.
Your calculations and understanding are correct. You will not meet affordability guidelines.