Enter a single employee's annual wage, the monthly lowest-cost silver plan premium for their ZIP, and pick a safe harbor method. We compute the required employer contribution — with the math visible.
At $68,500/year W-2, the employee's max share is $568.40/mo (9.96%). With LCSP at $584/mo, you must contribute at least $15.60/mo to clear the safe harbor.
For 2026, the ACA deems an ICHRA affordable if the employee's share of the lowest-cost silver plan (LCSP) premium, after the ICHRA contribution is applied, doesn't exceed 9.96% of household income. Since employers don't know household income, the IRS lets you use one of three safe harbors:
W-2 wages (Box 1) — use actual W-2 Box 1 wages. Best for salaried employees with stable compensation.
Rate-of-pay — take the employee's hourly rate × 130 hours × 12 months. Best for hourly workers.
Federal Poverty Line (FPL) — cap the employee's share at 9.96% of the FPL for their household size ($15,060 single in 2026). Simplest, but most expensive for the employer — safe harbor applies universally regardless of actual wage.
If the result is a negative number, you don't have to contribute anything — the employee's share is already below 9.96% of the basis. If the result is positive, that's your required minimum ICHRA contribution per employee per month.