2026 ACA Compliance: What Auto, Roads, Fuel, and Fleet Business Owners Need to Know Now

If you feel like the goalposts for healthcare compliance move every time you get settled, you aren’t alone. For 2026, the IRS has handed down a significant change to the Affordable Care Act (ACA) affordability threshold, and it’s one that requires a second look at your payroll and plan designs.

At NARFA, we know you’d rather spend your time managing your fleet or shop floor than auditing IRS tax codes. That’s why the NARFA Benefit Center handles the heavy lifting of compliance for our members. However, staying informed helps you understand the value of the protection your membership provides.

The New 2026 ACA Affordability Percentage: 9.96%

For the 2026 plan year, the IRS announced that the affordability percentage is jumping to 9.96%. To put that in perspective, it was 9.02% in 2025.

What does this mean for your bottom line? The IRS considers coverage “affordable” if the employee’s contribution for the lowest-cost, self-only plan doesn’t exceed this percentage of their household income. This nearly 1% increase is the highest threshold we’ve seen in years.

Practically speaking, this gives employers a bit more breathing room. It means you can potentially adjust employee contributions slightly without triggering the “B Penalty,” provided the coverage still meets minimum value standards.

2026 IRS Penalty Increases for Non-Compliance

The IRS has also adjusted the penalties for Applicable Large Employers (ALEs) for 2026. Ignoring these numbers is a massive risk for any growing business:

• The “A” Penalty (Failure to Offer): Now $3,340 per full-time employee.
• The “B” Penalty (Inadequate/Unaffordable Coverage): Now $5,010 per affected employee.

Understanding the ACA Safe Harbors for 2026

Since you likely don’t know your employees’ total household income, the IRS allows you to use Safe Harbors to prove affordability. Most NARFA members use one of these three:

1. W-2 Safe Harbor: Based on the wages reported in Box 1.
2. Rate of Pay Safe Harbor: Based on the employee’s hourly rate multiplied by 130 hours.
3. Federal Poverty Line (FPL) Safe Harbor: The simplest method, using a set monthly cap (approx. $129.89/month for 2026).

Important ACA Reporting Deadlines for 2026

Compliance isn’t just about the math; it’s about the paperwork. Even if your plans are affordable, failing to prove it to the IRS can lead to massive fines.

• March 2, 2026: Deadline to provide Form 1095-C to employees.
• March 31, 2026: Final date for electronic filing with the IRS.

Why NARFA Members Don’t Stress Over Compliance

Navigating these rules is a full-time job. For most brokers, you’re just another account. At NARFA, we specialize in the automotive, roads, fleet, and fuel industries. We understand that your workforce isn’t sitting behind desks all day.

When you are part of the NARFA family, you aren’t just buying a health plan; you’re gaining a compliance department.

• Automated Tracking: We help ensure your data is ready for year-end reporting.
• Expert Oversight: Our Benefit Center team stays on top of IRS Revenue Procedures so you don’t have to.
• Group Buying Power: We leverage our collective size to get you “Big Company” rates and compliance tools that small shops usually can’t access alone.

The Bottom Line

2026 brings more flexibility with the 9.96% threshold, but the cost of a mistake has never been higher. If you’re tired of worrying whether a paperwork error will cost you thousands in IRS penalties, it’s time to let the experts handle it.

Contact NARFA today to learn more about our programs and support.