IRS Releases 2019 ACA Affordability Rate

May 30, 2018

File Date: May 30, 2018

On May 23, 2018, The Internal Revenue Service (IRS) published Revenue Procedure 2018-34 that provides the 2019 indexing adjustments, which are applicable to certain provisions under Section 36B of the Internal Revenue Code.

2019 Shared Responsibility Percentage

The Revenue Procedure 2018-34 adjustments increase the Employer Mandate affordability thresholds under the Affordable Care Act (ACA) for 2019. Employer-sponsored health coverage for a 2019 calendar plan year will be considered affordable if the employee required contribution for self-only coverage does not exceed 9.86% of the Federal Poverty Level. This is an increase from the 2018 rate of 9.56%.

The 2019 poverty level guidelines will not be available until the end of January or later, therefore IRS guidance allows employers to use the poverty guidelines in effect within six months prior to the first day of the employer’s plan year. This means an employer with a January 1, 2019 plan year start may use the 2018 federal poverty guideline amount to determine the 2019 ACA Federal Poverty Level (FPL) Safe Harbor monthly threshold amount.

Thank you for choosing Paylocity as your Payroll Tax partner. Should you have any questions please contact your Paylocity Account Manager.

This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.


Date Posted: May 30, 2018