The IRS recently raised the affordability threshold for the 2019 calendar year to 9.86% of household income from the 2018 threshold of 9.56%. This percentage is also used to determine the affordability of employer-sponsored coverage. Failure to provide a full-time employee with affordable coverage can result in an employer shared responsibility penalty.
Year | Affordability % | Maximum Monthly Contribution* | Prior Year Federal Poverty Level (FPL) |
2019 | 9.86% | $99.75 | $12,140 |
2018 | 9.56% | $96.08 | $12,060 |
2017 | 9.69% | $95.93 | $11,880 |
*Based on Federal Poverty Level (FPL) affordability safe harbor.
For more information, contact your Bukaty benefit consultant at 913.345.0440.
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