July 29, 2020: BAN Legal Alert- IRS Issues Affordability Percentage Adjustment for 2021
Please find below a link to BAN’s Legal Alert on Rev. Proc. 2020-36, which contains the inflation adjusted amounts for 2021 used to determine whether employer-sponsored coverage is “affordable” for purposes of the ACA’s employer mandate and premium tax credit program. For plan years beginning in 2021, the affordability percentage for employer mandate purposes is indexed to 9.83%, a slight increase from 9.78% in 2020.
This alert is of interest to all applicable large employers (ALEs) – generally, those with at least 50 full-time equivalent employees.