Affordability Safe Harbor Adjustments

January 4, 2016
Posted in ACA 101
January 4, 2016 LI Advantage

Affordability Safe Harbor Adjustments

Treasury and the IRS will begin to adjust the affordability safe harbors to conform with the annual adjustments for inflation applicable to the “9.5% of household income” analysis under the ACA. 9.66% for plan years beginning in 2016. For example, in a plan year commencing in 2016, an employer’s MEC plan will be “affordable” if the employee’s contribution for lowest cost, self-only coverage does not exceed 9.66% of the employee’s W-2 wages (Box 1).

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