TOOLS · ICHRA AFFORDABILITY · 2026

The minimum ICHRA contribution that clears 9.96% safe harbor.

Enter a single employee's annual wage, the monthly lowest-cost silver plan premium for their ZIP, and pick a safe harbor method. We compute the required employer contribution — with the math visible.

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$

W-2 Box 1 wages (or your estimate for rate-of-pay).

$ /mo

Lowest-cost silver plan for the employee's ZIP. Look it up on healthcare.gov or CMS LCSP table. Default is 2026 national average.

FPL safe harbor caps employee share at 9.96% of $15,060 (2026 FPL single) regardless of wage — the strictest test.

Used only if FPL method is selected. 2026 FPL single = $15,060; each additional person adds $5,380.

MINIMUM EMPLOYER CONTRIBUTION
$284.40/MO

At $68,500/year W-2, the employee's max share is $568.40/mo (9.96%). With LCSP at $584/mo, you must contribute at least $15.60/mo to clear the safe harbor.

Basis (annual)$68,500
× 9.96% / 12$568.40
LCSP premium$584.00
Required ICHRA / mo$15.60

How the 9.96% safe harbor works

For 2026, the ACA deems an ICHRA affordable if the employee's share of the lowest-cost silver plan (LCSP) premium, after the ICHRA contribution is applied, doesn't exceed 9.96% of household income. Since employers don't know household income, the IRS lets you use one of three safe harbors:

W-2 wages (Box 1) — use actual W-2 Box 1 wages. Best for salaried employees with stable compensation.

Rate-of-pay — take the employee's hourly rate × 130 hours × 12 months. Best for hourly workers.

Federal Poverty Line (FPL) — cap the employee's share at 9.96% of the FPL for their household size ($15,060 single in 2026). Simplest, but most expensive for the employer — safe harbor applies universally regardless of actual wage.

If the result is a negative number, you don't have to contribute anything — the employee's share is already below 9.96% of the basis. If the result is positive, that's your required minimum ICHRA contribution per employee per month.

Questions about the ICHRA calculator

For 2026, an ICHRA is considered affordable under ACA rules if the employee's net cost for the lowest-cost silver plan (LCSP) in their ZIP code does not exceed 9.96% of household income. Because employers don't know actual household income, the IRS allows three safe harbor methods — W-2 wages, rate-of-pay, or FPL — to test affordability with known data.
Three steps: (1) pick a safe harbor basis (W-2 wage, rate-of-pay, or FPL amount); (2) multiply that basis by 9.96% ÷ 12 to get the employee's maximum monthly share; (3) subtract that share from the monthly LCSP premium for the employee's ZIP. If positive, that's your required minimum ICHRA contribution. If zero or negative, no employer contribution is required.
The rate-of-pay method is generally best for hourly workers. It uses hourly rate × 130 hours × 12 months as the basis, so affordability doesn't fluctuate with actual hours worked. The FPL method is even simpler — one fixed basis ($15,060 in 2026) for everyone — but typically requires higher employer contributions for all but the lowest-paid employees.
If an ICHRA fails the affordability test, employees can opt out and claim premium tax credits on the Marketplace. If any full-time employee does that, the employer may face ACA employer shared responsibility payments (currently $4,460/year per employee who gets a subsidy). Run this calculator before your plan year begins — not after the fact.
Yes. The FPL safe harbor applies universally regardless of wage, ZIP, or hours. For a single employee in 2026: 9.96% × $15,060 ÷ 12 = $124.97/month maximum employee share. If the LCSP in their ZIP exceeds $124.97, you must contribute the difference. For high-earning staff this usually costs more than the W-2 method — but for mixed workforces it simplifies compliance to one number.