The Affordable Care Act requires employers who had 50 or more full-time or full-time equivalent employees to offer affordable health insurance to their full-time employees. The employer has to determine if the plans they are offering to their employees are affordable or not. The IRS sets the affordability percentage each year as a unit of measurement. If the employees monthly health insurance premium for the lowest cost plan offered by their employer is over that percentage of monthly wages, then the plan would not be an affordable health plan.
We also are using the latest version of the IRS publication for the Required Contribution Percentage for purposes of the ACA. You can locate this document by Clicking Here.
In order to proceed forward with this calculator, you must have the monthly amount which your employees would pay if they were enrolled in the employee-only health insurance plan which has the lowest cost. You will also need your lowest paid employees hourly rate within your company. Do you have those amounts?
You cannot proceed forward until you have the Employee-Only Coverage Level Amount for your lowest cost health insurance plan as well as your lowest paid employee's hourly rate within your company. Once you have these items, press the "Yes" button to continue.
How much is the employee-only monthly amount of the lowest cost insurance plan your company offers?
The monthly premium field is required. You must enter your employee-only monthly premium above to continue.
Do you have the hourly rate of the lowest paid employee within your organization?
You must have the employees hourly rate in order to continue. Please locate that amount and press yes when you do.
What is the hourly rate of your lowest paid employe within your company?
The hourly rate field is required. You must enter the hourly rate of your lowest paid employee within your company above to continue.
The safe harbor percentage for 2024 is %
The monthly wages which will be used as a unit of measurement for the lowest paid employee will be $.
**The above is based on 130 hours worked monthly to be considered full time (30 hours a week X 52 weeks a year = 1560 hours/12 months=130 hours)**
The monthly insurance premium must be less than or equal to:
Your employee only health insurance plan has a monthly cost of
**The above number is an estimation and should only be used as a reference point. Questions regarding the amounts you are paid, deducted, or taxed should all be brought to your employer for further clarification. Workforce 2080 provides these estimations to assist employees and employers determine a rough estimation of what taxes, payments, or deductions *could* be. These estimations should not be construed as implict or explicit guarantees in any way. Many factors come into play, such as rounding of figures in Payroll Software, errors in the submission through this portal etc. Workforce 2080 assumes no risk with these estimations and provides these tools to help educate the general population. All users who use these products and estimators outside of their intended use assume risk when used outside of the scope of educational and general knowledge.
Last Updated on 7/15/2024 @ 12:29 PM CDT