ACA Affordability Safe Harbors

Q: Does an employer have to use the same safe harbor for all of their employees?

A: An employer may choose to use one safe harbor for all of its employees or to use different safe harbors for employees in different categories, provided that the categories used are reasonable and the employer uses one safe harbor on a uniform and consistent basis for all employees in a particular category. If an applicable large employer offers multiple health care coverage options, the affordability test for a particular employee applies to the lowest-cost self-only coverage option that provides minimum value and that is available to that employee.

Additional Resources:

Questions and Answers on Employer Shared Responsibility Provisions Under the Affordable Care Act

“The Five Ws, and One H of Affordable Care Act (ACA) Affordability Safe Harbors” Alera Group, 23 Sept. 2020,

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