The IRS has updated the applicable percentage table used to calculate an individual’s premium tax credit and required contribution percentage for plan years beginning in calendar year 2025. This percentage is used to determine whether an individual is eligible for affordable employer-sponsored minimum essential coverage, as well as to determine whether an individual is eligible for an exemption from the individual shared responsibility payment due to a lack of affordable minimum essential coverage. For plan years beginning in 2025, the required contribution percentage under Code Sec. 36B is 9.02 percent. Further, the IRS and the Treasury Department have determined that the failsafe exception described in Code Sec. 36B(b)(3)(A)(ii)(III) applies for calendar year 2025, and no additional adjustment under Code Sec. 36B(b)(3)(A)(ii)(II) is required for calendar year 2025. The guidance is effective for tax years and plan years beginning after December 31, 2024.

Rev. Proc. 2014-37, I.R.B. 2014-33, 363 is supplemented.

Rev. Proc. 2024-35