As mandated by the Affordable Care Act (ACA), eligible employers must offer healthcare that meets minimum essential coverage (MEC) requirements to 95% of their full-time employees and their dependents.

The law also indicates your employees’ required contribution for self-only coverage must be no more than 9.02% of their household income (this percentage is adjusted for inflation each calendar year).

However, since employers do not often know their employees’ household incomes, the ACA has created
safe harbors that can be used in lieu of household income to determine affordability.