ACA Safe Harbor Calculator Tool2019-03-15T13:52:11+00:00

A big part of the Affordable Care Act is making sure that the coverage being offered to individuals is affordable based on what are called “safe harbors.” Use our free affordability calculator below to enter the employee share of the employee only coverage that you offer, and the following results will display the minimum values that an employee would require to meet affordability for each one.

Step 1: Fill in your email address.

Step 2: Enter Monthly Employee Share of Employee Only Coverage:
Step 3: Select tax year: 

CONUS FPL Alaska FPL Hawaii FPL Rate of Pay (Annual Salary) Rate of Pay (Hourly Rate) W2 Wages

Disclaimer:The results from this calculator are intended to be a guideline and may not reflect the results for your employer plan. Assumptions include that the plan is a calendar year plan and that no changes were made during the year to employment status, employee share of employee-only coverage amounts, pay changes, etc. The regulations include provisions for non-calendar year plans, partial year employment, pay increases/reductions, change in employee status, etc. Those provisions are not accounted for in this calculator as they require detailed data elements.

The IRS has determined three different allowable safe harbors that can be used to measure affordability for ACA purposes:

FPL (Federal Poverty Line)
The result for this value will always remain the same for a tax year no matter what employee cost value you enter, as it is intended to be a simple check as to whether what the employee is required to pay for their share of employee only coverage is higher or lower than the FPL value. If the number you typed in is higher than the number that displays in the results, your coverage would be unaffordable per this safe harbor.

Rate of Pay
Two result values will display for this safe harbor; one that shows an annual salary that an employee would have to earn in order for the coverage amount that you type in to be considered affordable, and one that shows an hourly rate of pay they would need to earn. This safe harbor can be used for both salaried and hourly employees, but salaried employees need to be checked against an annual value, while hourly employees need to be checked against an hourly value.

W2 Wages
This result will display the minimum W2 Box 1 wage value that an employee would need to earn for a year in order for the coverage amount you typed in to be considered affordable.

For more information on the IRS safe harbors, visit and reference section VIII beginning on page 8563.