Affordability Safe Harbors

The IRS recently updated the affordability percentage to 9.78% for plan years that begin on or after Jan 1, 2020. As a reminder, this percentage is used by employers subject to the employer mandate to determine whether or not the employer’s coverage is considered affordable for an employee. There are 3 affordability safe harbors an employer may use to determine whether or not coverage is “affordable” for an employee. The 3 safe harbors include: Rate of pay Federal Poverty Level (FPL) W-2 Let’s l

The IRS recently updated the affordability percentage to 9.78% for plan years that begin on or after Jan 1, 2020.  This percentage is used by applicable large employers to determine whether or not the employer’s coverage is considered affordable for an employee. There are 3 affordability safe harbors an employer can rely upon to determine whether or not coverage is “affordable” for an employee. The 3 safe harbors include: Rate of pay Federal Poverty Level (FPL) W-2 Let's look at the Federal Pove