How to use ACAwise's ALE Status Calculator to determine ALE status?
688 views | Last modified 1/28/2021 7:32:16 AM EST | Added by ACAwise Team

When it comes to Affordable Care Act reporting, employers with 50 or more full-time and Full-Time Equivalent (FTE) employees must comply with employer shared responsibility provisions and the employer information reporting requirements to avoid potential penalties imposed by the IRS.

It is very important for every employer to confirm their ALE status to determine whether or not they must comply with the ACA employer mandate and report the ACA Form 1095-C and Form 1094-C to the IRS.

Here’s how you can use ACAwise's ALE Status Calculator to determine your ALE status.

Information You Need

• Number of Full-Time Employees during each month 

A full-time employee under the ACA is one that works 30 hours per week or a total of 130 hours per month.

• Hours worked by Part-Time employees each month.

The part-time employees can be seasonal employees, temporary employees, or interns. 

The hours that these employees work may add up to that of a full-time employee, also known as a full-time equivalent employee.

Calculate ALE status

Once you have gathered the required information to use in the tool, here’s what to do next:

• Enter the number of Full-Time Employees working each month in the space given for each month under the Number of Full-Time Employees column. For example: if you have 60 full-time employees, enter it in the provided space.
• Enter the total number of working hours of Part-Time Employees each month in the Part-Time Employees hours column. For example: if you have 20 employees who work 60 hours per month, then enter 1200 hours (20*60) in the provided box.

The same instructions apply to the other calendar months. Once you enter these two values, our automated ALE status calculator simultaneously determines the number of full-time equivalent employees you have for each month. 

• Finally, click on Calculate. Our ALE status calculator shows your result instantly.

Interpretation of Result

• 50 or more- You are an ALE for the current calendar year. 
• Fewer than 50 -  You are NOT an ALE for the current calendar year. 

If you are a self-insured employer, you are still required to file ACA returns for all covered individuals with the IRS regardless of the employee count shown in the result to avoid penalties from the IRS.

If you are an ALE, you must meet the employer shared responsibility provisions and the employer information reporting requirements to avoid potential penalties from the IRS. Use our ALE status calculator to determine if you are an ALE or not.