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The poverty threshold is a level that is determined by the federal government. The household poverty level is determined by the number of people who live in the home, with the poverty level rising as the number of residents increases.

Although a person may be employed, it does not mean that they have earnings about the poverty level. Being employed and having earnings above the poverty level are two separate items that are not dependent on each other.

A person can be employed and still under the poverty threshold as the earnings could be less than the threshold limit.

What is the poverty threshold?

The poverty threshold defines the minimum level of income that is necessary for a family to meet its basic needs. The families or individuals who fall below this income are considered poor.

A person's employment affects his standard of living but that does not necessarily keep him above the threshold.

An employed individual may fall below the threshold if the income earned by him is less than the limit set by the threshold.

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