Six Things Applicable Large Employers (ALEs) Need To Know About Information Reporting and Health Coverage Offers

Applicable Large Employers (ALEs) are generally those employers with 50 or more full-time employees, including full-time equivalent employees in the preceding calendar year. If you are an applicable large employer, did you know the Affordable Care Act requires your company to file data returns that report information with the IRS and with your employees as well? Under the Affordable Care Act, not only are you responsible for jumping through all the hoops of providing coverage for your employees, you also need to be the main source of reporting such information to the Internal Revenue Service.

Applicable Large Employers (ALEs) Under ACA

applicable large employers

Applicable Large Employers (ALEs)

As a full-service employee benefits and insurance agency serving Southern California, Pontrelli, Timour & Associates understand that Obamacare has been driving you crazy as a business owner. Luckily, we are here to help guide ALEs through the obstacle course of providing the right benefits at the right cost, while advising you on resources to ensure your reporting requirements are executed on time. We are here to help ease the frustrations of the ACA, and help you contain costs, while keeping your valued employees happy with their benefit options.

Although many employers are not ALEs, thus not subject to this health care tax provision, the employers that do fall under the ALE definition must take action. If you are an applicable large employer you must use Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns, and Form 1095-C, Employer-Provided Health Insurance Offer and Coverage. These IRS forms are used to report the information about offers of health coverage and enrollment in health coverage for their employees.

Here are six key points ALE’s need to know about the information returns they must file:

Six Key Points for Applicable Large Employers (ALEs)

  1. Form 1095-C is used to report information about each employee who was a full-time employee of the ALE member for any month of the calendar year.
  2. Form 1094-C must be used to report to the IRS summary information for each employer, and to transmit Forms 1095-C to the IRS.
  3. ALEs file a separate Form 1095-C for each of its full-time employees, and a transmittal on Form 1094-C for all of the returns filed for a given calendar year.
  4. Applicable Large Employers that offer employer-sponsored self-insured coverage use Form 1095-C to report information to the IRS and to employees about individuals who have minimum essential coverage under the employer plan.
  5. The information reported on Form 1094-C and Form 1095-C is used in determining whether an employer owes a payment under the employer shared responsibility provisions.
  6. Forms 1094-C and 1095-C, or a substitute form must be filed regardless of whether the ALE member offers coverage, or the employee enrolls in any coverage offered.

If you are an applicable large employer (ALE) and you have yet to file these forms, you are already sailing in treacherous seas. Luckily, Pontrelli, Timour & Associates can help applicable large employers right the ship of their companies and return to calm waters. The goal of PT Benefits is to make sure that our client companies that are ALE’s avoid unnecessary IRS fines while keeping in compliance. At the same time, we want to help you recruit and keep the best employees by offering you’re the best benefits program options available.

PT Benefits Can Help ALEs

To learn more about how PT Benefits can help applicable large employers, please contact us today by calling 626-795-4138 today.