United Benefit Advisors Insight and Analysis Blog

IRS Releases the Indexed 2020 Affordability Percentage

By Karen Hsu, Director of Compliance at United Benefit Advisors
  Aug 28, 2019 3:30:00 PM

The IRS released Notice 2019-29 that adjusts the affordability percentage for 2020.

UBA_stock_8_jrTo avoid penalties under the Affordable Care Act, large employers must offer minimum value, affordable coverage to their full-time employees. The IRS adjusts the percentage for calculating affordability each year. For 2020, coverage will be considered affordable if it costs less than 9.78% of the employee's household income.

Topics: IRS, Internal Revenue Service, compliance recap