ACA Affordability Calculator

Quickly estimate your ACA eligibility and potential savings. Use this simple tool to get personalized results in seconds.

ACA Safe Harbor Tool

What is the best ACA safe harbor method to use?

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 2025 safe harbor amount of .0902:

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.

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

2025 Federal Poverty Level (FPL) for a single individual ($): Hourly Wage ($): Annual W-2 Earnings (Box 1) ($):

ACA Safe Harbor Tool 2026

What is the best ACA safe harbor method to use for 2026?

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.

Monthly Cost of Lowest-Cost Plan ($): 2026 Federal Poverty Level (FPL) for a single individual ($): Hourly Wage ($): Annual W-2 Earnings (Box 1) ($):

Frequently Asked Questions

1. What information do I need to calculate ACA affordability for employees?

You generally need the lowest-cost self-only health plan premium that provides minimum value, along with the employee information required for the selected safe harbor. GoBenefits’ calculator uses information such as the Federal Poverty Level, hourly rate of pay, and annual W-2 wages to estimate the maximum employee contribution and required employer contribution.

2. How much can an employee be required to pay for ACA coverage in 2026?

For 2026, the ACA required contribution percentage is 9.96%. The maximum affordable employee contribution depends on the safe harbor method being used, along with the applicable employee wage or Federal Poverty Line information. The GoBenefits calculator can help estimate the maximum monthly employee contribution under each safe harbor.

3. How does the Rate of Pay safe harbor work for hourly employees?

For hourly employees, the ACA Rate of Pay safe harbor generally uses the employee’s hourly rate of pay multiplied by 130 hours per month to determine the applicable monthly rate of pay. The applicable ACA affordability percentage is then used to determine the maximum amount the employee can be required to contribute toward self-only health coverage.

4. How does the W-2 safe harbor calculate ACA affordability?

The W-2 safe harbor determines ACA affordability using an employee’s wages reported in Box 1 of Form W-2. The applicable ACA affordability percentage is applied to the employee’s W-2 wages to determine the maximum affordable employee contribution toward self-only coverage that provides minimum value.

5. What happens if an employee's wages or hourly rate changes during the year?

Changes in an employee’s wages or hourly rate may affect ACA affordability, depending on the safe harbor method being used. Employers should review applicable changes under the Rate of Pay safe harbor and W-2 safe harbor and maintain accurate employee compensation and benefits information. Regularly reviewing these changes can help employers monitor ACA affordability requirements and compliance and identify potential issues with employee contributions.

6. How often should employers review ACA affordability calculations?

Employers should review ACA affordability as part of their ongoing benefits and ACA compliance process, particularly when employee pay, plan premiums, or other relevant coverage details change and when preparing for a new plan year.

7. Can an ACA affordability calculator help employers reduce ACA penalty risk?

Yes. An ACA affordability calculator can help employers evaluate whether employee contributions meet applicable ACA affordability requirements under an eligible safe harbor. Reviewing these calculations can help employers identify potential affordability issues and take corrective action before they create greater compliance risk.

GoBenefits also provides broader ACA compliance support, including affordability and eligibility management, payroll data integration, and 1094-C and 1095-C reporting support.