IRS Updates the Health Plan Affordability Percentage for 2022
… plan coverage that is affordable. Coverage is generally considered affordable if the employee contribution for employee-only (single) coverage does not exceed a set percentage (9.61% in 2022) of household income. NOTE: Coverage is considered affordable for dependents as well, regardless of the contribution amount, as long as the employee-only (single) coverage is affordable. Coverage is also considered affordable for purposes of satisfying §4980H(b) requirements if the employee contribution satisfies at least one of three available safe harbors (i.e., federal poverty level (FPL), rate of pay, or Form W-2). Required Contribution Percentage Originally, for 2014 …
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