An Applicable Large Employer (ALE) is a company that is subject to the employer mandate under the Affordable Care Act (ACA). ALEs must offer affordable, minimum value health coverage to full-time employees or risk penalties.
👥 How do you know if you’re an ALE?
You’re considered an ALE if you had an average of 50 or more full-time employees, including full-time equivalents (FTEs), during the previous calendar year.
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Full-time employees work 30 or more hours per week (or 130+ hours per month)
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Part-time hours are combined to calculate FTEs
(e.g., two employees working 15 hours/week = one FTE)
If your total full-time + FTE count is 50 or more on average for the year, you’re an ALE for the following calendar year—even if your workforce shrinks.
🧠Important Notes:
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Being an ALE triggers reporting requirements (Forms 1094-C and 1095-C)
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ALE status is based on headcount, not how many people are offered coverage
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Seasonal workers may be excluded if they work 120 days or fewer