The FPL Affordability Safe Harbor contribution for 2024 plan years (starting 1/1/2024 or after) is $14,580 FPL x 8.39% = $1223.26/year or $101.94 per month. The affordability percentage is outlined in the IRS Rev. Proc. 2023-29.
As a refresher, this affordability safe harbor is utilized to avoid the B penalty (Affordable Care Act 4980H(b)) for not offering affordable coverage to eligible employees. The 2024 B penalty is $4,460 per year or $371.67 per month per full time employee (including those determined in the look back period) who receives a premium tax credit by purchasing coverage through an exchange.
For 2024, the penalty for not offering overage to 95% of eligible full time employees is $2,970 or $247.50 per month. The penalty is calculated per month by multiplying the monthly penalty amount times the number of eligible full time employees for the month, less thirty (30).
If you have any questions regarding the 2024 affordability percentage, please contact your Gehring Group benefits consultant for further details.