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ACA Update: Affordability Percentage to Increase in 2015

Beginning in 2015, the Affordable Care Act (ACA) requires applicable large employers to offer affordable, minimum coverage to their full-time employees or be subject to a penalty. This rule is better known as the employer mandate, or the "play or play" rule. For coverage to be considered affordable, an employee's required contribution for self-only coverage cannot exceed a certain percentage of their annual household income. For plans beginning in 2014, the percentage used to determine affordability was 9.5 percent of an employee's annual household income. According to a bulletin released by the IRS in July, however, this percentage is set to increase to 9.56 percent for plan years beginning in 2015.

Click the link below to read the full bulletin, brought to you by G&A Partners.IRS Increases Affordability Percentage under Employer Mandate for 2015

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Last Updated

08.13.2014

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