The Affordable Care Act (ACA) requires applicable large employers (ALE's) to offer affordable, minimum value health coverage to their full-time employees or possibly pay a penalty. ALE's are also subject to reporting certain information regarding the coverage offered to the IRS and their employees. The ACA defines an ALE as an employer that employs, on average 50 or more full-time employees, including full-time equivalents (FTEs), during the preceding calendar year.

When determining if your organization is an ALE, it is important to be aware of the common ownership, controlled group and affiliated service group rules. Sometimes, determining whether two or more organizations must be treated as a single employer involves a complex analysis of ownership interests.

See the Employee Calculator that can be used to help determine if you are required to offer affordable, minimum value health coverage to your full-time employees or risk paying a penalty in 2020. This calculator has detailed instructions and information including which employees to include, how to count seasonal and part-time workers and how to count hours of service. Also, see the Affordable Care Act - Are you an Applicable Large Employer? for additional information regarding your company's status.

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Nichole Sehon