The IRS announced the new annually indexed percentage for affordability under the Affordable Care Act’s employer mandate provision. Per Notice 2019-29, applicable large employers (ALEs) can charge no more than 9.78% of income for plan years beginning on/after January 1, 2020. This represents a decrease from the 2019 percentage of 9.86%. Therefore, some employers will have to lower their employee contribution for single coverage to avoid potential penalties.
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