IRS Releases ACA Affordability Calculations for Calendar Year 2024
The IRS has released Rev. Proc. 2023-29, which contains the Affordability Calculations under the Affordable Care Act (ACA) for the 2024 calendar year. As a reminder, group health plans that have at least 50 full-time employees (including full-time equivalents) must provide health coverage to their employees that is affordable under the ACA. The IRS releases affordability percentages each year and what was affordable in 2023 may not be affordable in 2024.
For 2024, in order for employers to make an “affordable” offer of coverage under the ACA, the employee required contribution to that coverage cannot be above 8.39% of that employee’s annual earnings. Due to the significant drop in affordability percentage, employers should ensure that their plans that were designed to comply with ACA mandates are still compliant.
You can read the entire Rev. Proc. HERE.