Are you an Applicable Large Employer (ALE)? How iSolved can help you determine your ALE status.
Is your company going through change? Are you growing? Have you acquired new businesses or have been acquired? All these scenarios can change your ALE status, thus dictating whether you’re required to offer medical coverage and do ACA reporting.
As a starting point, let us define an Applicable Large Employer (ALE). An ALE according to the IRS is a company who “has at least 50 full-time employees, including full-time equivalent employees, on average during the prior year, the employer is an ALE for the current calendar year, and is therefore subject to the employer shared responsibility provisions and the employer information reporting provisions.” Essentially, every year you should be reviewing your employee mass and determining your average employee count in the prior year. If that number comes out to 50 employees on average, then you have determined that you are an ALE.
If you would like to learn more about the calculation used to determine ALE status, please follow this link. The good news is that iSolved has a report to help you determine your average employee count.
This report is called the ACA Large Employer Compliance Test. It can be found by navigating to Reporting > Client Reports. At the beginning of each year, you should run this report for the prior year to determine if your average employee count meets the requirements for ALE status. For example, if you were to run this report today you would run it for the date range of 1/1/2018 to 12/31/2018. If this report shows that your average employee count was 50, then you know you will need to report ACA for 2019. Note that this report uses the data from payroll and the employee records in iSolved. If someone is coded as a full-time employee, the system will count them as such. If the employee is listed as part-tim,e it will use the hours recorded through payroll to determine full-time equivalency.
If you have any questions regarding this report, ACA in general, or have determined you are now an ALE please reach out to us via email at firstname.lastname@example.org or by phone at 877-763-5111.