Kilpatrick Townsend

Shared Responsibility Safe Harbor Proposal

This afternoon IRS dropped Notice 2011-73, which espouses a safe harbor permitting employers that offer coverage to their employees to measure the affordability of that coverage by using wages that the employer paid to an employee, instead of the employee’s household income.  This proposed safe harbor would only apply for purposes of the employer shared responsibility provision, and would not affect employees’ eligibility for health insurance premium tax credits.  A copy is linked below.