Are you an Applicable Large Employer (ALE) for 2018?
It's time to find out, because ACA filing is still a requirement for any employers meeting the law's Applicable Large Employer threshold.
The first step in the reporting process is to determine if you are an ALE. ALEs have 50 or more FTEs and are subject to the Employer Shared Responsibility mandate. FTEs (Full-Time Equivalents) include both Full-Time Employees (i.e. employees who average 30 Hours of Service per week) and full-time equivalencies. For example, three part-time employees working 10 hours per week equate to one FTE.
The determination of ALE status is made retrospectively: Employees are counted for the 2017 calendar year to determine ALE status in 2018. An organization is an ALE if it employed an average of at least 50 full-time employees and full-time equivalents during the preceding calendar year.
For organizations that may have common ownership, certain employer aggregation rules apply in determining whether an employer is an ALE. These rules delineate that all employers are treated as one employer for purposes of determining ALE status (even if there are separate EINs amongst the organizations). The employers that comprise the ALE are each referred to as ALE Members.
Remember, the ACA is still the law of the land - now's the time to determine ALE status!
To determine ALE status, run our “ACA – Full Time Equivalent Monthly” report in CheckWriters. Before you run this report, please remember to:
- Make sure that salaried employees have default hours assigned (this can be found under Employee Rates).
- All employees have been assigned an Employee Type: Full time, Part time, Officers, or Seasonal (this can be found under Employee Status/Position).
- Determine and assign which Earning Codes should be checked off as “ACA eligible” so that those hours are calculated in this report (the checkbox option for each Earnings code can be found under Company/Earnings).
Now you're ready to run the report! Be sure to use 2017 dates (as this is the 12 month span during which your FTEs are counted for 2018 ALE determination), and if you have determined that you are an aggregate ALE Member, you will want to run this report across multiple companies in our system to get an overall total.
If you find that you are not (or are no longer) an ALE for 2018 – you're likely off the hook. However, if you do find that you are an ALE or ALE member, CheckWriters will help you manage the process and handle your filing requirements.