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.
