The IRS has updated its Affordable Care Act (ACA) “affordability” threshold for 2024….to 8.39%.
See Rev. Proc. 2023-29: 26 CFR 601.105: Examination of returns and claims for refund, credit, or abatement; determination of correct tax liability.
Under the ACA, applicable large employers must offer affordable health insurance coverage to full-time employees. If the employer does not offer affordable healthcare coverage, it may be subject to an employer shared responsibility payment.
Employers should review their 2024 enrollment forms and employee communication materials, and payroll practices, as soon as possible to ensure their health plan continues to be communicated to employees as “affordable” under the IRS’ new 8.39% threshold.