ALE Calculator - Determine your Applicable Large Employer
(ALE) Status

Employers with 50 or more Full Time and Full-Time Equivalent (FTE) employees are considered as an ALE (Applicable Large Employer). ALEs must report the employees health coverage information through ACA Form 1095-C to the IRS under section 6056.

The calculator will help you determine the ALE Status.

Instructions:

  • Enter the number of full-time employees at the end of each applicable month in the ‘Number of Full Time Employees’ column.
  • Enter the total number of hours worked by all part-time employees for each applicable month in the ‘Part-Time Employees Hours’ column.

This is all you need to do!

We will automatically calculate ‘the total full-time equivalent employees’ for each month.

After entering the required data click on the “Calculate” button to get the ALE STATUS.

Note:

FTE: Full Time Employees

PTE: Part Time Employees

FTEE: Full Time Equivalent Employees

TFTE: Total Full-Time Employees

TFTEE: Total Full-Time Equivalent Employees

Mos No.
of FTE
FTEE TFTE
PTE
hours
TFTEE
Jan
hrs 0 0
Feb
hrs 0 0
Mar
hrs 0 0
Apr
hrs 0 0
May
hrs 0 0
Jun
hrs 0 0
Jul
hrs 0 0
Aug
hrs 0 0
Sep
hrs 0 0
Oct
hrs 0 0
Nov
hrs 0 0
Dec
hrs 0 0

Result

0

Monthly Full Time Employees Average

*This calculator is only for an informational purpose, there are many factors to be considered like Aggregated ALE Group, Control group before calculating the ALE Status. You are advised to consult with your Tax advisor to calculate your ALE Status properly. Also review the ESRP (Employer Shared Responsibility Provisions) under section 4980H of the IRC Code.


Frequently Asked Questions

Q. How is ALE status calculated?

An employer with at least 50 or more “full-time employees' ' or “full-time equivalents' ' is considered as an “applicable large employer” or ALE.
Full time employees:
A full-time employee is someone who works an average of 30 hours per week, or 120 hours in a calendar month, which would be treated as equivalent to 30 hours/week.
Full time equivalent employees:
A full-time equivalent is NOT an actual employee.
To calculate “full-time equivalents”, an employer must look at the aggregate number of hours worked for each month for all non-full-time employees. A “non-full-time employee” is one who does not regularly work 30 or more hours/week.
An employee who is not a full-time employee under this standard (including a seasonal employee) for a given month is taken into account in the FTE calculation. This includes “variable hour employees,” or someone who is simply part time.

Q. Does your Organization have employees that work outside of the U.S.?

Employees who work outside of the U.S. are excluded from the Full Time Equivalent calculation.

Q. Why do I need to calculate ALE Status?

If you have more than 50 Full Time Equivalent Employees, you will need to comply with the ACA employer mandate and report the ACA Form 1095-C and Form 1094-C to the IRS.

Q. I am having less than 50 Full Time Equivalent Employees. Are we still required to comply?

However, if you are under the 50 FTE number, and are a company that is self-insured, you are still required to file ACA returns for all covered individuals regardless of the employee count.


A Quick Guide for Employers

ACAwise has created a Free guide to help applicable large employers to know 2024 ACA Reporting Requirements
and ACA Codes better.

ACA Reporting Requirements for 2024

ACA Code Cheatsheet for 2024

Have a question in calculatingyour ALE Status using our Calculator?

Contact our experts with your questions through any one of the options.