ACA Information Center for Applicable Large Employers (ALEs)
Summary
Two provisions of the Affordable Care Act apply only to applicable large employers (ALEs): the employer shared responsibility provision and the employer information reporting provision for offers of minimum essential coverage. In addition, self-insured ALEs – that is, employers who sponsor self-insured group health plans – have additional provider information reporting requirements.
Employers must determine their ALE status each calendar year based on the average size of your workforce during the prior year. Employers that had at least 50 full-time employees, including full-time equivalent employees, on average last year, are most likely an ALE for the current year.
What’s Trending for ALEs
ACA Employer Webinars Now Available on Demand
IRS ACA Employer Webinars are now available for viewing in the IRS Video Portal. The Power Point presentations are also available to download.
- ACA Employer Shared Responsibility Webinar – aired April 6, 2016
Learn about Internal Revenue Code Section 4980H; how to determine if you are an Applicable Large Employer (ALE); defining who is considered to be a full-time employee; and when an ALE may be subject to an Employer Shared Responsibility Payment.
- ACA Information Reporting by Providers of Minimum Essential Coverage (MEC) (6055) Webinar – aired March 29, 2016
Learn about Internal Revenue Code Section 6055; who is required to report; what elements are required to be reported; and how to complete the form.
- ACA Applicable Large Employers Information Return Requirements (IRC 6056) for Tax Year 2015 Webinar - aired March 30, 2016
Learn about Internal Revenue Code Section 6055, who is required to report, what elements are required to be reported, and how to complete the form.
Extended Due Dates and FAQs for 2015 Information Reporting Forms 1095-C
Beginning in 2016, applicable large employers must file an annual information return – and provide a statement to each full-time employee. If you will file 250 or more information returns, you must file the returns electronically through the ACA Information Reports (AIR) system. For more information see Publication 5165, Guide for Electronically Filing Affordable Care Act (ACA) Information Returns.
On Dec. 28, the IRS issued Notice 2016-4 extending the due dates for new health care information reporting forms in 2016. Get details about the extensions at the Extended Due Dates for 2015 Information Reporting Forms web page.
How to Determine if you are an ALE
If an employer has at least 50 full-time employees, including full-time equivalent employees, on average during the prior year, the employer is an ALE for the current calendar year. However, an employee will not be counted toward the 50-employee threshold for a month in which the employee has medical care through the military, including Tricare or Veterans’ coverage. For more details see this page.
Resources for Applicable Large Employers
ACA Tax Provisions for Employers - See the Tax Provisions for Employers on the Tax Provisions page
- Employer Shared Responsibility Provision
- Information Reporting Requirements for ALEs
- Additional Information Reporting Requirements for Providers (Self-Insured ALEs)
Questions and Answers
- Employer Health Care Arrangements
- Employer Shared Responsibility
- Information Reporting by Employers on Form 1094-C and Form 1095-C
- Information Reporting by Health Coverage Providers (Section 6055)
- Information Reporting of Offers of Health Insurance Coverage by Employers (Section 6056)
- Reporting Value of Employer-provided Health coverage on Form W-2
Forms and Publications
- Form 1094-C and Form 1094-C Instructions, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns
- Form 1095-C and Form 1095-C Instructions, Employer-Provided Health Insurance Offer and Coverage
YouTube Videos
- Health Care Law: Are You an Applicable Large Employer? English
- Health Care Law: Information Reporting for Employers English
- Health Care Law: Information Reporting for Self-Insured Employers English | ASL
Podcasts
- Health Care Law: Are You an Applicable Large Employer? English
ACA Information Reporting (AIR) Program
ALEs that file 250 or more information returns must file the returns electronically. For information on the communication procedures, transmission formats, business rules and validation procedures for returns transmitted electronically through the ACA Information Reports (AIR) system, review Publication 5165.
Outreach Materials
Drop-in Articles
Employers, tax preparation firms, and other organizations are encouraged to post the drop-in articles on their websites and use them in other communication vehicles.
- Health Care Reporting Forms for 2015 Now Available
- New IRS Web Page Helps Employers Meet Reporting Requirement
- New IRS Resource helps Employers Understand the Health Care Law
Electronic Publications for Employers
- Reporting Responsibilities for Health Coverage Providers (Publication 5215) English
- Are you an applicable large employer? (Publication 5208) English
- What employers need to know (Publication 5200) English
- Understanding employer reporting requirements of the health care law (Publication 5196) English
- Guide for Electronically Filing Affordable Care Act (ACA) Information Returns For Software Developers and Transmitters (Processing Year 2015) (Publication 5165) English
Webinars for Employers
- Employer Shared Responsibility Provision
- Employer-Sponsored Health Coverage Information Reporting Requirements for ALEs
- Information Reporting Requirements for Providers of Minimum Essential Coverage
Health Care Tax Tips – See our tax tips page for individuals and employers
