# ACA affordability

> ACA affordability — 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.

Source: https://lopifi.com/glossary/aca-affordability
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**What is 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 known as

- Required contribution percentage

## Words this system refuses for it

- cheap
- under budget

- **Category:** Benefits
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** safe