The IRS recently lowered the affordability threshold for the 2020 calendar year to 9.78% of household income from the 2019 threshold of 9.86%. This percentage is used to determine an individual’s eligibility for a premium tax credit and 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)|
For questions, contact your Bukaty benefits consultant at 913.345.0440.