ACA Quick Access Tool & Calculator

Employers must use one of three ACA affordability safe harbor methods to ensure their employee health coverage meets affordability requirements under the Affordable Care Act. Below are the three safe harbor methods using 2026 safe harbor amount of .0996:

• Federal Poverty Line (FPL) Safe Harbor: Uses a set percentage of the federal poverty level to determine the maximum employee contribution.
• Rate of Pay Safe Harbor: Uses an employee’s hourly wage multiplied by 130 hours per month to calculate affordability.
• W-2 Safe Harbor: Bases affordability on an employee’s annual Box 1 W-2 earnings.
• Employer Guidance:: Once the employee's maximum monthly contribution is calculated under each safe harbor method, you can determine the required employer contribution by subtracting this maximum contribution from the monthly cost of the lowest-cost health plan you offer.
• Example::If your lowest-cost plan is $500/month, and the employee's contribution under the Rate of Pay method is $250/month, your required employer contribution would be $250/month for that employee.

Use this calculator to determine the best method based on your employees' wages.

This ensures your plan remains affordable under the ACA and helps avoid potential penalties.