IRS 2020 Affordability Rates

IRS 2020 Affordability Rates

The IRS announced new contribution percentages for 2020 to determine the affordability of an employer’s plan under the Affordable Care Act (ACA). Employer sponsored coverage, for plan years beginning in 2020, will be considered “affordable” if the employee’s required contribution for self-only coverage doesn’t exceed 9.78% of the employee’s household income for the year (for purpose of both the pay or play rules and premium tax credit eligibility).