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.
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.
What is the affordability percentage under the employer mandate?
For 2025, employee-only coverage is affordable if the cost doesn’t exceed 9.02% of income. Employers can use IRS safe harbors to calculate affordability and avoid penalties.