2. Large Employer Status

Applicable Large Employer (ALE):  [sc_embed_player fileurl=”http://acareportingservice.com/wp-content/uploads/2015/07/ALE.mp3″]    Simple Audio Definition

Whether an employer is an ALE is determined each calendar year, and generally depends on the average size of an employer’s workforce during the prior year. If an employer has fewer than 50 full-time employees, including full-time equivalent employees, on average during the prior year, the employer is not an ALE for the current calendar year.

    • A full-time employee for any calendar month is an employee who has on average at least 30 hours of service per week during the calendar month, or at least 130 hours of service during the calendar month.
    • An employer determines its number of full-time-equivalent employees for a month in the two steps that follow:
      1. Combine the number of hours of service of all non-full-time employees for the month but do not include more than 120 hours of service per employee, and
      2. Divide the total by 120.
        • An employer’s number of full-time equivalent employees (or part-time employees) is only relevant to determining whether an employer is an ALE, and does not apply for penalty purposes.

Does Your Company Have Between 50 and 100 employees, Or 100+:

ACA regulations provide some relief for employers for the 2015 calendar year filing.  There are two types of relief:

  • 50-99 Relief – Employers in this size category will not be subject to ACA penalties for the 2015 calendar year, although they still do need to complete ACA reporting.
  • 100+ Relief –  Should you have a 4980h penalty for not providing coverage, the first 80 employees will be excluded from the calculation (as opposed to 30 employees excluded after 2015).

In order to qualify for this relief, you must be able to certify regarding your company that since February 9th, 2014 your company:

  1. Hasn’t changed workforce size to ensure you are under 100 employees,
  2. Hasn’t narrowed eligibility for your medical plan,
  3. Has maintained the same or higher % employer contribution toward medical plan costs, and
  4. Still offers minimum value coverage.


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