Using Affordable Care Act Safe Harbors to Estimate Employee Income

Content Summary

Affordable Care Act Safe Harbors are one of three accepted methods of estimating employee income, which in turn is the basis for applying that year’s affordability rate. For the 2024 tax year, that was 8.39%. The IRS deems coverage to be affordable if it was available to a FT employee for less than 8.39% of their income (9.02% for 2025). The more an employee earns (or is estimated to earn), the more they can afford and the less an employer may need to subsidize. The three Safe Harbors are:

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