ALE Status
- Standard Full-Time employee count and FTE employee count (Full Time Equivalent) display by month. The total of these two employee counts determines if an employer is an ALE.
- An Applicable Large Employer is commonly referred to as an ALE. An ALE is an employer with at least 50 full-time employees, including full-time equivalent employees. Companies under a common ownership or control are combined to determine whether they meet the threshold of 50 full-time equivalent employees.
- ALEs are subject to information reporting and the employer shared responsibility provisions of the health care law.
- The ALE Status Tracker displays the number of Full-Time and Full Time Equivalents on file by month, and includes a running total. This information provides analytics directly to the employer to determine if they are or are not an ALE.
Visit the IRS ACA Information Center for more detail on ALE’s.
See "Master ALE Status" for information regarding ALE status for situations with multiple businesses having common ownership (a control group).
The IRS outlines the following steps on how to determine if you are an applicable large employer:
► Determine how many full-time employees you had each month of the prior year. This provision defines a full-time employee for any calendar month as one who has, on average, at least 30 hours of service per week.
► Determine how many full-time equivalent employees you had each month of the prior year. To do this, combine the number of hours of service of all non-full-time employees for the month – but no more than 120 hours per employee – and divide that total by 120.
► For each calendar month, add your full-time and full-time equivalent employees for a monthly total. Add the monthly totals. Divide the sum of the monthly totals by 12. If the result is 50 or more employees, you are an applicable large employer.
Full-Time: Under the employer shared responsibility provision, a full-time employee is, for a calendar month, an employee working an average of at least 30 hours of service per week, or 130 hours per month. Hours include hours worked and hours paid but not worked. Examples of paid but not worked: vacation, holiday, jury duty, sick time.
Full-Time Equivalent: This is a calculation determined by taking the total number of hours for non-full-time employees, capped at 120 hours per employee and dividing the aggregated total hours for the month by 120.
Example
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