The IRS released the affordability safe harbor percentage for plan years beginning on or after January 1, 2020. Employers should use 9.78% to determine affordability for their 2020 plan year. This is a decrease from the 2019 affordability safe harbor percentage of 9.86%.
Please contact your Assurance representative with any questions.
Information contained herein is not intended to constitute tax or legal advice and should not be used for purposes of evading or avoiding otherwise applicable regulatory responsibilities as issued by the federal or state government(s) and/or taxes owed under the Internal Revenue Code. You are encouraged to seek advice from your legal or tax advisor based on your circumstances.