Applicable large employer
In accounting, applicable large employer means an employer that averaged at least 50 full-time employees, full-time equivalents included, over the prior calendar year — the employers the ACA's employer mandate and Form 1095-C reporting apply to. Companies under common control are counted together.
Also called ALE.
Authority: IRC §4980H(c)(2) (opens in a new tab). Sources
The lessons that teach this
From the free founder back-office course, taught on one company's books, with exercises to work it yourself.
- BenefitsDoes a startup have to offer health insurance? › Counting to 50: full-time equivalentsThe applicable large employer test, month by month: full-time heads, part-time hours over 120, a twelve-month average rounded down.8 min
- BenefitsHRAs: QSEHRA and ICHRA › ICHRAThe individual coverage HRA: any size, no federal cap, classes of employees, and why it counts as an offer of coverage.6 min
- BenefitsACA reporting: Forms 1094-C and 1095-CForms 1094-C and 1095-C for ALEs, 1094-B and 1095-B for coverage providers, the 2025-year deadlines and the website-notice option the 2024 law created.8 min
What it is not called
Each of these means something else. Use one here and an accountant reading the product notices.
- large company by revenue
- 50 heads (part-time hours count too)
Also in Benefits
Defined in Lexicon. This page is generated from that document, so the two can't disagree.