ACA on Demand, ACA Compliance Center: ACA: Affordability Tracking

The Affordable Care Act regulations are outlined by the IRS in Code 6055 / 6056.

When an employer is an ALE and providing benefits, the benefits must meet minimum essential coverage and be affordable.

There are two primary safe harbor tests for employers within ACA OnDemand to help answer the question, ‘Is the benefit coverage affordable?’

The two affordability safe harbors are

1. W2 Wage Test: ACA>Affordability Tracking>W2 Affordability
2. The Federal Poverty Line Test: ACA>Affordability Tracking>Federal Poverty Line Affordability

• Affordability Summary: displays if the employee and plan combination pass or fail the safe harbor W2 and/or Federal Poverty Line (FPL) Test
• W2 Wages: Stores Box 1 W2 Wages by employee
• W2 Affordability: The results of the W2 Affordability Test
• Federal Poverty Line Affordability: The results of the Federal Poverty Line Affordability Test