{"id":4932,"date":"2023-09-19T14:21:07","date_gmt":"2023-09-19T19:21:07","guid":{"rendered":"https:\/\/www.employco.com\/blog\/?p=4932"},"modified":"2023-09-19T14:23:49","modified_gmt":"2023-09-19T19:23:49","slug":"hr-newsletter-acas-affordability-percentage-decreases-for-2024","status":"publish","type":"post","link":"https:\/\/www.employco.com\/blog\/2023\/09\/19\/hr-newsletter-acas-affordability-percentage-decreases-for-2024\/","title":{"rendered":"HR Newsletter: ACA\u2019s Affordability Percentage Decreases for 2024"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.employco.com\/images\/newsletter\/HR\/November2021_IRS.jpg\" alt=\"HR Newsletter: ACA\u2019s Affordability Percentage Decreases for 2024\"\/><\/figure>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p>On Aug. 23, 2023, the IRS <a href=\"https:\/\/www.irs.gov\/pub\/irs-drop\/rp-23-29.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">released<\/a> the affordability percentage threshold for 2024 plan years under the Affordable Care Act\u2019s (ACA) pay-or-play rules. For plan years beginning in 2024, employer-sponsored coverage will be considered affordable under the ACA\u2019s pay-or-play rules if the employee\u2019s required contribution for self-only (employee-only) coverage does not exceed <strong>8.39%<\/strong> of their household income for the year.<\/p>\n\n\n\n<p>This is a significant decrease from the affordability percentage for 2023 plan years (9.12%) and the lowest this percentage has ever been set since the pay-or-play rules became effective. Applicable large employers (ALEs) will need to consider this affordability percentage in developing their health plan contribution strategies for the 2024 plan year. ALEs may have to reduce the amount they require employees to contribute in 2024 to meet the lower percentage.<\/p>\n\n\n\n<!--more-->\n\n\n\n<p>The ACA\u2019s pay-or-play rules require ALEs to offer affordable, minimum-value health coverage to their full-time employees (and dependents) or pay a penalty.<\/p>\n\n\n\n<p>Because an employer generally will not know an employee\u2019s household income, the IRS has provided three optional safe harbors that ALEs may use to determine affordability based on information that is available to them: the Form W-2 safe harbor, the rate of pay safe harbor, and the federal poverty level safe harbor.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On Aug. 23, 2023, the IRS released the affordability percentage threshold for 2024 plan years under the Affordable Care Act\u2019s (ACA) pay-or-play rules. For plan years beginning in 2024, employer-sponsored coverage will be considered affordable under the ACA\u2019s pay-or-play rules&hellip;  <\/p>\n<p class=\"more-link\"><a href=\"https:\/\/www.employco.com\/blog\/2023\/09\/19\/hr-newsletter-acas-affordability-percentage-decreases-for-2024\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[31],"tags":[],"class_list":["post-4932","post","type-post","status-publish","format-standard","hentry","category-hr-newsletter"],"featured_image_src":null,"author_info":{"display_name":"Employco USA","author_link":"https:\/\/www.employco.com\/blog\/author\/employcousa\/"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\r\n<title>HR Newsletter: ACA\u2019s Affordability Percentage Decreases for 2024 - Employco Blog<\/title>\r\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\r\n<link rel=\"canonical\" href=\"https:\/\/www.employco.com\/blog\/2023\/09\/19\/hr-newsletter-acas-affordability-percentage-decreases-for-2024\/\" \/>\r\n<meta property=\"og:locale\" content=\"en_US\" \/>\r\n<meta property=\"og:type\" content=\"article\" \/>\r\n<meta property=\"og:title\" content=\"HR Newsletter: ACA\u2019s Affordability Percentage Decreases for 2024 - Employco Blog\" \/>\r\n<meta property=\"og:description\" content=\"On Aug. 23, 2023, the IRS released the affordability percentage threshold for 2024 plan years under the Affordable Care Act\u2019s (ACA) pay-or-play rules. 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Pending regulatory approval, members could access certain prescription drugs for free as early as Jan. 1, 2023. In addition to insulin, the following medications will\u2026","rel":"","context":"In &quot;HR Newsletter&quot;","block_context":{"text":"HR Newsletter","link":"https:\/\/www.employco.com\/blog\/category\/employco-in-the-news\/hr-newsletter\/"},"img":{"alt_text":"UHC","src":"https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/hr\/Blog\/August2022_UHC.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/hr\/Blog\/August2022_UHC.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/hr\/Blog\/August2022_UHC.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/hr\/Blog\/August2022_UHC.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/hr\/Blog\/August2022_UHC.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":5536,"url":"https:\/\/www.employco.com\/blog\/2024\/09\/17\/hr-newsletter-majority-of-employees-likely-to-stay-in-current-job\/","url_meta":{"origin":4932,"position":4},"title":"HR Newsletter: Majority of Employees Likely to Stay in Current Job","author":"Employco USA","date":"September 17, 2024","format":false,"excerpt":"Recent reports have found that most employees are choosing to stay with their employers. As the labor market becomes less worker-friendly, employees are less likely to search for new jobs. Notably, a report from LinkedIn found that in 2024, employee attrition rates, which measure the percentage of workers that leave\u2026","rel":"","context":"In &quot;HR Newsletter&quot;","block_context":{"text":"HR Newsletter","link":"https:\/\/www.employco.com\/blog\/category\/employco-in-the-news\/hr-newsletter\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5802,"url":"https:\/\/www.employco.com\/blog\/2025\/05\/15\/hr-newsletter-employee-compensation-benefits-during-layoffs-and-furloughs\/","url_meta":{"origin":4932,"position":5},"title":"HR Newsletter: Employee Compensation &amp; Benefits During Layoffs and Furloughs","author":"Employco USA","date":"May 15, 2025","format":false,"excerpt":"During periods of economic or business uncertainty, employers may need to downsize their workforce. Such reductions can take a variety of forms but frequently include employee layoffs or furloughs. Employers who take these measures must ensure that they are in compliance with laws governing compensation and employee benefits. Some key\u2026","rel":"","context":"In &quot;HR Newsletter&quot;","block_context":{"text":"HR Newsletter","link":"https:\/\/www.employco.com\/blog\/category\/employco-in-the-news\/hr-newsletter\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/posts\/4932","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/comments?post=4932"}],"version-history":[{"count":2,"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/posts\/4932\/revisions"}],"predecessor-version":[{"id":4935,"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/posts\/4932\/revisions\/4935"}],"wp:attachment":[{"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/media?parent=4932"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/categories?post=4932"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/tags?post=4932"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}