Within the IRS-issued Revenue Procedure 2021-36, the affordability threshold for the 2022 calendar year has been set to 9.61% of household income. This percentage is a decrease from the 2021 threshold of 9.83%. The affordability threshold is used to determine an individual’s eligibility for a premium tax credit. It also sets the standard for employer-sponsored health care coverage affordability. Employers with 50-plus, full-time-equivalent employees are subject to a shared responsibility penalty resulting from a failure to provide full-time employees with affordable coverage, as established through the Affordable Care Act.
|
YEAR |
AFFORDABILITY % |
MAXIMUM MONTHLY |
PRIOR YEAR FEDERAL POVERTY LEVEL (FPL) |
|
2022 |
9.61% |
$103.15 |
$12,880 |
|
2021 |
9.83% |
$104.52 |
$12,760 |
|
2020 |
9.78% |
$101.79 |
$12,490 |