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IRS to lower 2020 affordability rate

Authored by Bukaty Companies on August 5, 2019

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)
 2020  9.78%  $101.79  $12,490
 2019  9.86%  $99.75  $12,140
 2018  9.56%  $99.75  $12,060

For questions, contact your Bukaty benefits consultant at 913.345.0440.

Blog Category: Health Care Reform, Compliance