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When it comes to figuring out what your Affordable Care Act obligations as a business or organization are, a big part is finding out if you qualify as an Applicable Large Employer (ALE).

Depending on the number of qualified employees you have, you may or may not be subjected to the employer shared responsibility (ESR) provision. That means that you wouldn’t have the same obligations as a larger organization.

Want to find out what exactly qualifies as an ALE? Read on to find out.

Need to know if you count as an Applicable Large Employer? Here are tips for understanding health care reform.

What Counts as an Applicable Large Employer?

An employer that employed, on average, at least 50 full-time employees during the prior calendar year. It’s not quite as simple as counting out your full-time employees, however.

You still may count as an ALE even if you have fewer than 40 employees who average at least 130 hours per month on the job depending on the number of part timers employed. For a guide of how to figure out to full-time equivalency of part timers, check out this past blog post.

Counting Commonly-owned Companies as One

Commonly-owned and controlled companies are treated as a single company and may also be considered as an ALE, even if some of them have fewer than 50 full-time equivalent employees. As long as the various companies have more than 50 full-timers, then it’s subject to ESR provisions. Furthermore, each member of the group is responsible for its own reporting.

Contact Apple Growth

If you would like to learn more about how my aca partner can manage your reporting and keep track of your full-time and full-time equivalent employees, please contact Vicki Trettel at 330.867.7350 to schedule an appointment with one of our experts.

Susan Burnoski, Director/Senior Manager – Audit & Assurance