ACA Affordability Percentages Will Increase for 2021

OMA Connections Partner One Source Advisors reports that the IRS recently issued Revenue Procedure 2020-36 to index the contribution percentages to determine affordability of an employer’s plan under the Affordable Care Act. For plan years beginning in 2021, employer-sponsored coverage will be considered affordable if the employee’s required contribution for self-only coverage does not exceed:

This is a slight increase from the affordability contribution percentages for 2020. As a result, some employers may have additional flexibility in setting their employee contributions for 2021 to meet the adjusted percentage. 8/10/2020