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What is an Applicable Large Employer (ALE)?

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ALE 

The Affordable Care Act (ACA) is a set of laws that regulate healthcare in the United States. Many of these regulations depend on an employer's classification as an Applicable Large Employer (ALE). So what is an ALE? What does an ALE need to do to stay compliant?

How to define full time & part time employees

  • Full-time Employees: 30+ hours/week or 130+ hours/month
  • Part-time Employees: under 30 hours/week

ALE Criteria

  • 50+ Full-time employees
  • 50+ Full-time employee equivalent: when the work time of 2+ employees adds up to a full-time employee workload.

Example: Roger and Amy are both part-time employees for a company with 49 full-time employees. Roger works 10 hours/week and Amy works 25 hours/week. Combined, Roger and Amy work 35 hours/week. Because the sum total of these employees is over 30 hours/week, the IRS counts them as 1 full-time employee. Now, the company has 50 “full-time” employees and qualifies as an ALE and therefore must file 1094-C and 1095-C forms.

 

ALE checklist

  • Provide minimum essential coverage to all full-time employees
  • If mailing, print forms (links at end of page)
  • File one 1094-C form to the IRS (1095-C summary page)
  • File one 1095-C form to the IRS for every full-time employee employed any month of the calendar year.
  • Distribute personalized 1095-Cs to every full-time employee. 

Still have questions?

1095-C Reporting: What you need to know in 2019

Another year of confusion awaits for 1095-C reporting. You have probably already started to receive questions about this year's requirements. Watch the video to get a head start.

 

Watch Webinar

 

BerniePortal 1094-C/1095-C Reporting

Need an assist? We've got you covered! Using benefit data already in BerniePortal, generating 1094-C/1095-C is painless. BerniePortal takes this data and transfers it onto official forms, so you don’t have to. We'll even file your forms for you!

 

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