ACA employer mandate at 50 full-time employees
Once you average 50 or more full-time employees, including full-time equivalents, you are an applicable large employer (ALE).
- 01
Count full-time and equivalents
Full-time means 30 or more hours per week. Part-time hours are combined into full-time equivalents to test ALE status for the next year.
- 02
Offer coverage to full-time employees
ALEs must offer affordable, minimum-value coverage to at least 95% of full-time employees and their dependents, or risk a penalty.
- 03
Test affordability
Use an IRS safe harbor (W-2 wages, rate of pay, or federal poverty line) to confirm the employee share of self-only coverage is affordable.
- 04
Track variable-hour employees
The look-back measurement method lets you determine full-time status for employees whose hours vary.
- 05
File 1094-C and 1095-C
Furnish 1095-C forms to employees and file with the IRS each year.
General information, not legal or tax advice. Rules change; confirm current requirements with the relevant agency or your advisor.