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.

Does Your Company Know About The Affordable Care Act’s Employer Shared Responsibility Payment?

Under the Affordable Care Act, applicable large employers – those with 50 or more full-time employees, including full-time equivalent employees – are required to take some new actions. Applicable large employers (ALEs) particularly need to pay attention. ALEs are subject to the employer shared responsibility provisions. A goal of Pontrelli, Timour & Associates is to provide our clients and potential clients with the best information available about the employer shared responsibility provisions and all the requirements of the Affordable Care Act. After all, information is the power to chart the right course.

The Affordable Care Act’s Employer Shared Responsibility Payment

employer shared responsibility payment

Employer Shared Responsibility Payment

Whether an employer is an applicable larger employer in a particular calendar year depends on the size of the employer’s workforce in the preceding calendar year. This is a key distinction to remember. To be defined as an ALE for a particular calendar year, an employer must have had an average of at least 50 full-time employees (including full-time-equivalent employees) during the preceding calendar year. All types of employers can be ALEs, including tax-exempt organizations and government entities.

To prepare for 2016, if your organization is an applicable large employer, you need to keep track information each month in 2015, including the following:

  • Whether you offered full-time employees and their dependents minimum essential coverage that meets the minimum value requirements and is affordable
  • Whether your employees enrolled in the minimum essential coverage you offered

PT Benefits can help our clients keep track of this information by providing supporting guidance and information.

Your company needs to track this information because you could be subject to an employer shared responsibility payment if your organization falls into either of these circumstances:

  • You offered coverage to fewer than 70 percent of your full-time employees in 2015 while at least one full-time employee enrolled in coverage through the Health Insurance Marketplace and receives a premium tax credit. The 70 percent threshold is for 2015, after 2015 this increases to 95 percent.
  • You offered coverage to at least 70 percent of your full-time employees and their dependents in 2015, but at least one full-time employee receives a premium tax credit because coverage offered was not affordable, did not provide minimum value or the full-time employee was not offered coverage. After 2015, this threshold increases to 95 percent.

 Pontrelli, Timour & Associates Can Help

Pontrelli, Timour & Associates understands if these requirements and logistics seem complicated. We can help you understand your company’s designation and take the steps to remain in compliance with the Affordable Care Act. Naturally, our goal is to help your company avoid an employer shared responsibility payment. To learn more and access the help you need, please call the group insurance experts at PT Benefits at 626-795-4138.Employer Shared Responsibility Payment