Affordable Care Act Reporting Updates
This post is for Applicable Large Employers (ALEs) required to comply with the Affordable Care Act. We hope you find it helpful.
Affordability Percentage Threshold
The affordability percentage threshold has gone up slightly from 9.56% to 9.86%. This means an employee can spend .3% MORE of their income on their self-only premium than they did last year, and it still qualifies as “affordable.”
As long as the plan is offered and affordable, then the employer has met their burden.
The “B” Penalty
The “B” penalty also is adjusted for inflation each year. It started at $3,000 per year per employee in 2015 (which is pro-rated monthly for partial year violations). Last year it was $3,480. For the 2019 Filing Year it goes up to $3,750.
Individual Mandate Eliminated
Also changed for this year is the elimination of the Individual Mandate, the tax penalty for an individual who did not have coverage. There is no longer any penalty to individuals.
This is not to be confused with the requirements and penalties for ALEs who fail to offer qualifying coverage.