Money in a jar with a graph background

    IRS to raise 2021 affordability rate

    Authored by Bukaty Companies on July 29, 2020

    The IRS recently raised the affordability threshold for the 2021 calendar year to 9.83% of household income from the 2020 threshold of 9.78%. 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)
    2021 9.83% $104.52 $12,760
    2020 9.78% $101.79 $12,490
    2019 9.86% $99.75 $12,140

    For questions, contact your Bukaty benefits consultant at 913.345.0440

    Blog Category: Affordable Care Act