An Applicable Large Employer (ALE) is a business that has at least 50 full-time employees, including full-time equivalent employees. The current provisions of the Affordable Care Act only affect your business if you are considered an Applicable Large Employer.

You will not be subject to the employer shared responsibility provisions if you fall below the ALE threshold. The employer shared responsibility is a payment made to the IRS if the employer does not offer health coverage to their employees.


Here are five things every ALE should know:            

  1. One of the responsibilities as an Applicable Large Employer is an annual review of the minimum essential coverage offered to employees.
  2. ALE’s that provide health coverage for their employees, must file an annual return reporting specific information for each employee that is covered.
  3. As an Applicable Large Employer, you must either offer minimum essential coverage that is affordable to your full-time employees and their dependents, or make an employer shared responsibility payment to the IRS. 
  4. ALE’s may have to report the worth of each employee’s health plan on their W2 Forms.
  5. All applicable large employers with exactly 50 employees, can purchase affordable health care coverage via the Small Business Health Options Program (SHOP) at the Marketplace.


More Information

To find a Liberty Tax ACA Advisor at your local Liberty Tax office, call 800-673-8600 or visit