Interactive Tool
ACA affordability check
A 30-second gut check on whether your lowest-cost plan meets the ACA employer-mandate affordability test — and whether you might be contributing more than you need to.
Your plan
The IRS sets this each plan year. Confirm the current figure with your advisor — it’s pre-filled with a recent value.
Your affordability result
Using the Rate of Pay safe harbor at 9.96%.
Based on this safe harbor, your lowest-cost employee-only contribution is at or below the affordability threshold — so it should satisfy the ACA employer mandate.
You’re contributing well below the affordability ceiling. There may be room to rebalance contributions — without risking compliance — to fund richer benefits or offset costs elsewhere. A good topic for a strategy review.
Rate of Pay
Uses the lowest hourly rate × 130 hours. The simplest, most forgiving option for hourly workforces.
W-2 Wages
Uses each employee’s W-2 Box 1 wages. Precise, but not known with certainty until year-end.
Federal Poverty Line
Uses the FPL as the wage base. The safest harbor — pass it and every employee is deemed affordable.
This check provides a directional estimate for general educational purposes only and is not legal, tax, or compliance advice. ACA affordability rules, safe harbors, and the annual percentage change over time. Talk with an FBP advisor to confirm your plan’s compliance for the current plan year.