What is an ALE Calculator?


The Affordable Care Act (ACA) requires “applicable large employers” (ALEs) to offer health coverage to at least 95% of full-time employees and their children (as defined by the ACA) or potentially pay a tax penalty. In addition, the ACA reporting requirement under Code Section 6056 requires ALEs to submit annual reports to the IRS and written statements to employees that include data about medical plans offered, the cost of coverage and enrollment.

Two provisions of the Affordable Care Act apply only to applicable large employers (ALEs):

The employer shared responsibility provisions; and the employer information reporting requirements for offers of minimum essential coverage. 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. Therefore, the employer is not subject to the employer shared responsibility provisions or the employer information reporting requirements for the current year. Employers who are not ALEs may be eligible for the Small Business Health Care Tax Credit and can find more information about how the Affordable Care Act affects them on the ACA Tax Provisions for Small Employers page.
  • If an employer has at least 50 full-time employees, including full-time equivalent employees, on average during the prior year, the employer is an ALE for the current calendar year. It is therefore subject to the employer shared responsibility provisions and the employer information reporting requirements.

The Affordable Care Act (ACA) requires “applicable large employers” (ALEs) to offer health coverage to at least 95% of full-time employees and their children (as defined by the ACA) or possibly pay a tax fine. Also, the ACA reporting requirement under Code Section 6056 requires ALEs to submit annual reports to the IRS and written statements to employees that include information about medical plans offered, the price of coverage, and enrollment.

Find out if you are an Applicable Large Employer with our ALE Calculator. Get your Free Download by entering your details. Please check your spam folder if you do not receive it in your inbox.


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