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On May 21, the Internal Revenue Service (IRS) issued Revenue Procedure 2018-34 to index the contribution percentages in 2019 for purposes of determining affordability of an employer’s plan under the Affordable Care Act (ACA). For plan years beginning in 2019, employer-sponsored coverage will be considered affordable if the employee’s required contribution for self-only coverage does not exceed:
- 9.86 percent of the employee’s household income for the year, for purposes of “pay or play rules,” and premium tax credit eligibility
- 8.3 percent of the employee’s household income for the year, for purposes of an individual mandate exemption (adjusted under separate guidance)