Determine Large Employers for the Affordable Care Act

Summary

How to determine an Applicable Large Employer (ALE) determined by the Affordable Care Act?

Resolution

An Applicable Large Employer employs at least 50 full-time or full-time equivalent employees during any month of the preceding calendar year. A full-time employee is one who averages at least 30 hours of service per week in a calendar month. There are factors that impact this calculation. For example, hours worked, seasonal workers, participation in a controlled or aggregate group, government entities, transition accommodations for new employers, etc.

To determine whether your company is an applicable large employer, be sure to review the following IRS documentation: Determining if an Employer is an Applicable Large Employer (ALE). Find the definition of an Applicable Large Employer and Employer Aggregation rules. This resource also includes full-time employee calculation examples. This includes aggregate ALE groups, the impact of seasonal workers on calculations, and transition accommodation for new employers.

To identify your full-time equivalent employees, see Is there a report to show the Affordable Care Act applicable hours by month?

Solution Properties

Solution ID
230918230751287
Last Modified Date
Fri Oct 30 22:40:00 UTC 2026
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