The IRS has updated the applicable percentage table used to calculate an individual’s premium tax credit and required contribution percentage plan years beginning in calendar year 2027. The percentage is used to determine whether an individual is eligible for affordable employer-sponsored minimum essential coverage; the percentage is used to determine whether an individual is eligible for an exemption from the individual shared responsibility payment because of a lack of affordable minimum essential coverage. For plan years beginning in 2027, the required contribution percentage under Code Sec. 36B is 10.22 percent. Further, the IRS and the Treasury department have determined that the failsafe exception described inCode Sec. 36B(b)(3)(A)(ii)(III) applies for calendar year 2027 and no additional adjustment under Code Sec. 36B(b)(3)(A)(ii)(II) is required for calendar year 2027. The guidance is effective for tax years and plan years beginning in calendar year 2027.
Rev. Proc. 2014-37, I.R.B. 2014-33, 363 is supplemented.
