Get ready: The amount your company will be deducting from employees’ pay for health insurance premiums may change in 2022. IRS has lowered the ACA affordability percentage.
That’s the first time since the Affordable Care Act (ACA) became law that the affordability percentage will decrease.
It’ll be 9.61% of an employee’s household income, down from the current 9.83%, IRS announced in Revenue Procedure 2021-36.
The number to watch: $103.14
What will you need to automatically meet the feds’ standard for affordability?
You’re in the clear if you offer a medical plan option in 2022 that costs employees no more than $103.14 per month for employee-only coverage.