Aca Affordability Safe Harbor 2025. 1095C reporting How to use affordability safe harbors Integrity Data ALEs that fail to provide affordable coverage are liable for a penalty of $3,000 per year (as indexed for inflation) for each full-time employee who receives a premium tax credit through an ACA Marketplace The threshold increases to $141.38 per month in Alaska and $130.11 in Hawaii.
The ACA Affordability Determination in 2025 from www.newfront.com
For example, the maximum monthly contribution for ALEs with calendar-year plans that use the FPL safe harbor is $113.20 for 2025 (up from $101.94 for 2024) The affordability safe harbors are as follows: W-2 safe harbor
The ACA Affordability Determination in 2025
The employee's monthly contribution amount for the self-only premium of the employer's lowest cost coverage that provides minimum value is affordable if it is equal to or lower than 9.02% of the employee's W-2 wages (as reported on Box 1 of Form W-2). To determine affordability, employers can utilize one of three safe harbors: Federal Poverty Line (FPL) Safe Harbor: This safe harbor is typically the. If you answered "no," your company will be subject to penalties if one or more of your full-time employees receives a subsidy to purchase health coverage through an Exchange.
1095C reporting How to use affordability safe harbors Integrity Data. Federal Poverty Level Safe Harbor: For 2025, employers offering a plan that costs employees no more than $113.20 per month for self-only coverage will automatically meet the ACA affordability standard for FTEs working in the contiguous U.S The threshold increases to $141.38 per month in Alaska and $130.11 in Hawaii.
2024 Fpl For Aca Hilda Sephira. For the many plans using the FPL affordability safe harbor, the considerations differ for calendar- and noncalendar-year plans If the employee's contribution for single coverage under the employer's.