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WhitepaperCompliance & FiduciaryPDF5 pages

IRS Health Plan Affordability — 2027 Pay-or-Play Rules

The IRS adjusts the ACA affordability percentage annually. For 2027, the projected rate is 10.22% of household income (up from 9.96% in 2026). This whitepaper explains the three safe harbor methods (W-2, rate of pay, federal poverty line), how to apply them, and how to structure employee contributions to stay within the safe harbor while managing plan costs.

Intended for

HR and Benefits Leaders · CFOs and Business Owners

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Reviewed and updated for plan year 2026 ·

ACAAffordabilityEmployer Mandate2027

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IRS Health Plan Affordability — 2027 Pay-or-Play Rules

PDF · 5 pages

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Source & Methodology

Based on IRS Revenue Procedure 2025-XX and ACA §36B affordability regulations.

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