The “affordability” of the lowest cost, self-only health plan will be satisfied if the employee’s contribution does not exceed 9.78% of an employee’s household income.
This is a decrease from last year’s percentage of 9.86%.
Please note that the safe harbors of W-2, rate of pay, and federal poverty level are still available.
The employer mandate applies to applicable large employers (ALE) regardless of a state’s definition of large or small group. Fifty or more full time and full-time equivalents constitute an ALE. A penalty may apply if minimum value affordable coverage is not offered to at least 95% of full-time employees and dependent children
For more details about the Revenue Procedure, please click here.