Employers that have 50 or more full-time equivalent employees, or those in a controlled group of companies that together have 50 or more full-time employees, must be ready for health care reform. These employers are considered Applicable Large Employers (ALEs).
1. What is an Applicable Large Employer (ALE)?
An ALE is a single employer or a group of employers that employed an average of at least 50 full-time employees (including full-time equivalent employees) on business days during the preceding calendar year.
2. What is an ALE Member?
An ALE Member is a single entity that is an ALE, or each member of an ALE group.
3. What is an ALE Group?
An ALE group is a group of employers that are treated as a single employer as part of a controlled group and together have 50 or more full-time or full-time equivalent employees during the preceding calendar year.
4. What happens if an employee performs services for multiple members within an ALE group?
Each employer (each separate EIN) will send its own Form 1095-C to that employee. For any particular month, the employee is treated as the employee only of the ALE member for which the employee had the majority of the hours of service for that month. Only that employer will report Form 1095-C information for the employee for that month.
5. If an employer is part of an ALE group, do we have to know anything about the other members of the group?
Yes. The name and EIN of each employer member of the group will be reported on Form 1094 (just the largest 30 members).
For information about BAS’ health care reform reporting services, contact solutions@basusa.com.