ACA affordability
In accounting, ACA affordability means the test of whether an employer's cheapest self-only coverage is affordable: the employee's contribution may not exceed a percentage of household income — 9.96% for plan years beginning in 2026 — which employers measure through the W-2, rate-of-pay or federal poverty line safe harbor.
Also called Required contribution percentage.
Authority: Rev. Proc. 2025-25 (opens in a new tab). Sources
The lesson that teaches this
From the free founder back-office course, taught on one company's books, with exercises to work it yourself.
What it is not called
Each of these means something else. Use one here and an accountant reading the product notices.
- cheap
- under budget
Components that render the terms it depends on
No component names this concept outright, but it's built from terms that components do name. These render safe.
3Payments
Family spec5Ledger & tables
Family spec- ReportHeaderEntity, statement, period, basis, currency, as-of. Every figure states its basis.
- ReportingPackageA board or lender pack as one object: contents, basis, review state.
- StatementNotesNumbered notes, referenced from the line they explain.
- StatementOfChangesInEquityThe fourth statement. Equity components across, movements down.
- StatementRowIndent level, subtotal, total, expand.
8System & states
Family spec9Accounting core (GL)
Family spec14Tax & compliance
Family specAlso in Benefits
Defined in Lexicon. This page is generated from that document, so the two can't disagree.