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IRS Releases the Indexed 2021 Affordability Percentage

The IRS released  Revenue Procedure 2020-36, which increases the affordability threshold for ACA employer mandate pay or play purposes to 9.83% for plan years beginning in 2021 from 9.78% for 2020.

An employer uses the affordability percentage to determine whether it has offered affordable coverage under the ACA’s employer shared responsibility provisions to avoid Penalty B.

Read more about the affordability percentage.