Note: BBS will periodically review and update this information as it is made available and changes.Â
DEFINITIONS
W-2 Safe Harbor:
The W-2 safe harbor uses the employee’s annual W-2 (Box 1 value) and treats coverage as affordable if the employee contribution for the year does not exceed 9.61% of the W-2 value for the 2022 filing year.
Rate of Pay Safe Harbor:
The Rate of Pay safe harbor uses the employee’s rate of pay and treats coverage as affordable if the employee contribution for the year does not exceed 9.61% of the employee’s rate of pay for the 2022 filing year.
Federal Poverty Line Safe Harbor:
The IRS lowered the employer health plan affordability threshold for 2022 to 9.61% of pay cost-sharing. Under FPL Safe Harbor, the cost is limited to $103.14/mo for self-only coverage.