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