The Affordable Care Act’s (ACA’s) affordability percentage for employers to avoid a shared responsibility payment (penalty) is decreasing in 2023. The ACA’s employer-shared responsibility provision requires applicable large employers to offer minimum essential coverage that’s “affordable” and that provides “minimum value” to full-time employees or potentially make an employer-shared responsibility payment to the IRS. Health insurance coverage is considered “affordable” to an employee if the lowest-cost self-only health plan is 9.5% or less of a full-time employee’s household income (indexed for inflation). The percentage for 2023 will decrease from 9.61% to 9.12%. (IRS Rev Proc 2022-34)