The Internal Revenue Service (IRS) has released Rev. Proc. 2019-29, which contains the inflation adjusted amounts for 2020 used to determine whether employer-sponsored coverage is “affordable” for purposes of the Affordable Care Act’s (ACA) employer shared responsibility provisions and premium tax credit program.
Clients who are applicable large employers can now begin calculating their highest premium amounts under the three different affordability safe harbors for 2020 based on the newly released affordability percentage.
Employers should keep in mind that the 2020 federal poverty level will not be released until the first quarter of 2020, but they can make their calculations based off of the 2019 level now.