The various provisions under the ACA law affects many businesses. The size of your staff helps govern which provisions apply to your company.
What determines whether your company is an applicable large employer for the current year is the number of staff you had the prior year. This matters because, under the ACA law, there are two provisions that pertain only to applicable large employers. These provisions include the employer shared responsibility and the employer information reporting of the minimum essential coverage. Most employers fall below the staff size threshold, therefore are not subject to any of these ACA law provisions.
Your company size is determined by the number of your staff.
- Under the ACA, a company with 50 or more full-time employees or full-time equivalents is considered an applicable large employer, or ALE.
- The employer shared responsibility provision determines if a company is an ALE for the current year based on the number of staff a company had during the prior year.
- Companies with less than 50 full-time or full-time equivalent employees are not considered an applicable large employer.
- If the work force in your company varies throughout the year, it is important to calculate the number of staff, especially if you have close to 50 employees.
For more information on whether your company is considered an ALE, visit Determining if an Employer is an Applicable Large Employer page on IRS.gov/aca.
To find a Liberty Tax® ACA Advisor at your local Liberty Tax® office, call 800-673-8600 or visit www.healthcaretaxinfo.com