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Integrity Data

No, the IRS is Not Serving Drinks; ALE is a Classification in the Affordable Care Act


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ACA Flowchart: Employers with fewer than 50 full-time employeesFiling deadlines for new Affordable Care Act forms are looming and businesses are scrambling to figure out what they need to do to comply. Many blogs and articles have been written to make IRS guidelines more understandable for the small business owner who is just now realizing they might be considered an ALE (Applicable Large Employer).

Even if you don’t consider your business a large business at 40 full-time employees and 15 part-timers, the IRS may. It all depends on your employees’ service hours.  For information on how to count ACA-defined full- time employees and full-time equivalents (FTEs), please see our blog post titled 1095-C Reporting: Determining a Company’s ALE Status or visit the ALE Info Center on the IRS website.

It is vital that you understand this information in order to meet your reporting obligations for Affordable Care Act compliance.

Once you have determined that you are an ALE, the question becomes what exactly you need to do to be compliant with the ACA employer requirements. Integrity Data has created infographics to simplify it for you. These flowcharts provide information on what to do for four different categories of employers:

  1. Employers with fewer than 50 full-time employees, including FTEs
  2. Employers with 50 to 99 full-time employees, including FTEs
  3. Employers with 100 to 249 full-time employees, including FTEs
  4. Employers with 250 and more full-time employees, including FTEs.

Each category has slightly different requirements. Not filing for a company with 50 full-time employees is not allowed under IRS rules for ACA enforcements. The penalty for “willfully disregarding” any IRS information reporting – including ACA returns – is $500 per required return.

Sticking your head in the sand on this compliance issue could be costly for you and your company. ACA penalties cannot be deducted as business expenses. Make sure you understand the new filing requirements under the Affordable Care Act.

For additional information – including direct links to IRS references, IRS tips to receive by email, and IRS handles to follow on social media – please visit the IRS resources page on Integrity Data’s site.

By Integrity Data, a provider of HR payroll and ACA reporting software

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