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ALE Applicable Large Employers


Two provisions of the Affordable Care Act apply only to applicable large employers (ALEs):

    • The employer shared responsibility provisions

    • The employer information reporting provisions for offers of minimum essential coverage

Whether an employer is an ALE is determined each calendar year, and generally depends on the average size of an employer’s workforce during the prior year.


  • If an employer has fewer than 50 full-time employees, including full-time equivalent employees, on average during the prior year, the employer is not an ALE for the current calendar year. Therefore, the employer is not subject to the employer shared responsibility provisions or the employer information reporting provisions for the current year. Employers who are not ALEs may be eligible for the Small Business Health Care Tax Credit and can find more information about how the Affordable Care Act affects them on the ACA Tax Provisions for Small Employers page.



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