July 23, 2020

Required Contribution Percentage Adjustment

The IRS announced (in Rev. Proc. 2020-36) the 2021 indexing adjustment to the Affordable Care Act’s (ACA’s) required contribution percentage. Applicable Large Employers (ALEs) subject to the ACA’s shared responsibility (pay or play) provisions use this percentage to determine whether the coverage they offer is affordable.

The 2021 percentage is 9.83% up from 9.78% in 2020. See ComplianceDashboard for the latest health plan limits and fees.

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