What are the ACA safe harbors?

Safe harbors are a way to calculate the health plan affordability for your employees.

The IRS provides you several different Safe Harbor methods that you can use to determine the affordability of the health plan you're offering to your employees.

GoCo allows you to choose one of the following safe harbor options:

Automatic (Recommended)

GoCo will automatically determine the best safe harbor configuration for your company.  You can preview the safe harbor configuration GoCo will use after setting up ACA compliance.  Just go to ACA Compliance / Settings / Affordability (Safe Harbors) to view the preview.

W2 Wages Safe Harbor

Best for employers who have mostly full-time employees whose compensation is unlikely to decrease during the year.

Rate of Pay Safe Harbor

Best for employers who have mostly have hourly employees and need a fast calculation method.

Federal Poverty Line Safe Harbor

Best for employers who have mostly temporary or seasonal employees.

Learn more about safe harbors and affordability from the IRS