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The IRS recently announced that the contribution percentages used to determine affordability for an employer’s health plan under the Affordable Care Act will decrease. For plan years starting in 2022, employer-sponsored coverage will be considered affordable if the employee’s required contribution for self-only coverage does not exceed:
The updated percentages are effective for taxable years and plan years beginning January 1, 2022. This is a significant decrease from the affordability contribution percentages for 2021. As a result, some employers may need to lower their employee contributions for 2022 to meet the adjusted percentage.
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This blog is intended to be a compilation of information and resources pulled from federal, state, and local agencies. This is not intended to be legal advice. For up to the minute information and guidance on COVID-19, please follow the guidelines of the Centers for Disease Control and Prevention (CDC) and your local health organizations.