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.
What is the monthly premium for the employee-only lowest cost plan you offer your full-time staff?
The monthly premium field is required. You must enter your employee-only monthly premium above to continue.
Is the lowest paid employee in your company paid hourly or salary?
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.
What is the salary of your lowest paid employe within your company?
The salary amount field is required. You must enter the salary amount 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 $.
**If Hourly, we take the hourly rate and multiply it by 2080 hours (52 weeks X 40 hours a week), and divide the result by twelve (12) months. If Salary, we take the salary amount and divide it by twelve (12) months.**
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 7/18/2024 @ 6:57 AM CDT