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) |
|
2022 |
9.61% | $103.15 | $12,880 |
| 2021 | 9.83% | $104.52 | $12,760 |
| 2020 | 9.78% | $101.79 | $12,490 |
.
For additional information, contact your Bukaty benefits consultant at 913.345.0440.