While there have been changes to the ACA, many provisions continue to be in effect and failure to comply with the law and regulations may result in penalties. The information below is current as of November 2022. Below are provisions that could affect your company.
- Applicable Large Employer (ALE) Designation—Companies with a monthly average of 50 or more full-time equivalent employees (FTEs) during the previous calendar year are considered ALEs and are subject to certain ACA regulations. Additionally, new employers that did not exist in the previous calendar year will be considered ALEs if they are reasonably expected to average and actually employ at least 50 full-time employees during business days in their first year of existence.
- For companies with shared ownership, a controlled group may exist. A controlled group exists when companies have one or some of the same owners or companies are owned by other companies. When a controlled group exists, ALE status is determined by aggregating the FTE count of all companies within the controlled group. If the entire controlled group had 50 or more FTEs during the previous calendar year, ALL the companies within the controlled group are ALEs and should certify their ALE status independently during the TriNet ALE designation process. Further, failure to identify other controlled group members accurately can result in IRS Section 6056 Reporting (discussed in more detail below) inaccuracies. Thus, if you have questions or uncertainty about your ALE designation, contact your legal or tax advisor.
What this means for you:
For more information about the ACA , visit trinet.com/affordablecareact.