The IRS recently issued Revenue Procedure 2021-36, lowering the affordability threshold for the 2022 calendar year to 9.61% of household income from the 2021 threshold of 9.83%. This percentage is used to determine an individual’s eligibility for a premium tax credit and the affordability of employer-sponsored health care coverage. Failure to provide a full-time employee with affordable coverage can result in an employer shared responsibility penalty under the Affordable Care Act.
|YEAR||AFFORDABILITY %||MAXIMUM MONTHLY CONTRIBUTION||PRIOR YEAR FEDERAL POVERTY LEVEL (FPL)|
For additional information, contact your Bukaty benefits consultant at 913.345.0440.