An applicable large employer (ALE) is an employer that had an average of at least 50 full-time employees on business days during the preceding calendar year. Under the Affordable Care Act, an ALE offers health insurance coverage to its full-time employees and meets certain requirements for providing affordable care. An ALE employer must also file information returns with the IRS and provide statements to their employees about the availability of affordable coverage through one or more of their plans.

Who is ALE? To qualify as an applicable large employer, your company must meet the following criteria:

• Your company pays at least $50,000 in annual wages to each employee. This includes full-time employees, part-time employees and seasonal workers.
• You have at least 50 full-time equivalent employees who work for you on average at least 130 hours per month. A full-time equivalent is any combination of FTEs that adds up to 50 or more (for example, 30 FTEs and 20 FTEs would also count toward this requirement).
• After calculating how many employees are included in this calculation, you should count both full-time and part-time workers who work 30 hours per week or more over the course of a year (as well as seasonal workers). You don't need to include interns or apprentices under these requirements unless they work more than six months continuously at your company (and then they will be treated as regular employees).
• Depending on the size of your business, you may be required to provide a 1095-C form to your employees and file Form 1094-C with the IRS by Feb. 28 or March 31, 2020 (for paper or electronic filing respectively).