ACA Affordability Percentage Increases for 2021
Despite the numerous delays and extensions surrounding government rulemaking in 2020 due to COVID-19, the IRS has timely released its annual notification of ACA Affordability Rate increase. Each year, employers subject to the Affordable Care Act (ACA) must ensure that all offers of health insurance coverage to employees are affordable. The IRS has released the new Affordable Care Act (ACA) affordability percentage: 9.83%. Employers can charge no more than 9.83% of an employee’s household income for medical premium payments under their Group Health Plan. The traditional Safe Harbors employers may use for calculation of this value (W-2, Rate of Pay, Poverty Level) remain in effect.