The FPL safe harbor sets a fixed monthly max—$113.20 in 2025—for self-only coverage to be considered affordable, making ACA compliance simple and consistent across all employees.
Costs & Affordability
What is the Rate of Pay safe harbor and how does it work?
Employers can meet ACA affordability by ensuring self-only coverage costs no more than 9.02% of an employee’s hourly rate × 130 hours or their monthly salary.
What is the W-2 safe harbor and how does it work?
Employers using the W-2 safe harbor must ensure employee-only coverage costs no more than 9.02% of W-2 Box 1 wages to meet ACA affordability requirements.
What is the family glitch?
The “family glitch” made families ineligible for subsidies if employee-only coverage was affordable—even if family coverage wasn’t. A 2023 rule change fixed this by evaluating family affordability separately.