On May 5, 2017, the Internal Revenue Service (IRS) issued Revenue Procedure 2017-36 to index the contribution percentages in 2018 for purposes of determining affordability of an employer’s plan under the Affordable Care Act (ACA). For plan years beginning in 2018, employer-sponsored coverage will be considered affordable if the employee’s required contribution for self-only coverage does not exceed:
- 9.56 percent of the employee’s household income for
the year, for purposes of both the pay or play rules and
premium tax credit eligibility; and
- 8.05 percent of the employee’s household income for
the year, for purposes of an individual mandate
exemption (adjusted under separate guidance).
View the full summary here: Affordability Percentages Will Decrease for 2018
If you have questions regards this change and the implications to your company’s benefits program, please reach out to our team at email@example.com.