Health Reform Q & A for Employers
Health Reform Q & A for Employers
ALE - Applicable Large Employer - over 50 lives
ALE – Applicable Large Employer – over 50 lives
Employer Penalty for not purchasing coverage
Mandate Flow Chart

Employers with over 50 lives (Employees) working over 30 hours/week Notice 2011-36   2012-01 (Part Timers count too as FTE Full Time Equivalents) have a requirement under Health Care Reform to purchase Health Insurance coverage for their employees or pay penalties of $2k/employee.


On April 7, 2017 TIGTA issued its, “Assessment of the Efforts to Implement the Employer Mandate under the Affordable Care Act.” In this report, TIGT explained that the IRS has developed an ACA Compliance Validation (ACV) System. It will be used to identify potentially non-compliant Applicable Large Employers and calculate the “A” penalty under the Employer Mandate. The IRS has been developing the ACV system since July 2015 with a scheduled completion date of January 2017. However, “the implementation of the ACV System has been delayed to May 2017.”

The report states that once the systems are in place, the IRS will be able to mass identify noncompliant employers. This will allow the IRS to send notices to noncompliant employers for any and all reporting years.

This means that time is up for employers who were delaying. The current lack of IRS notices for noncompliance with the Employer Mandate does not imply that the IRS does not intend to enforce the Employer Mandate. The IRS will come knocking, they are just running behind schedule. freedom care

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Arthur Gallagher FAQ‘s pdf  159 pages

What is Common Ownership – Affiliated Companies – Controlled Groups?

What about leased employees?

They are employees of the leasing company and MUST be covered by the leasing company.

Definition Leased Employee §414 (n)   (Controlled Groups)

How about just Changing Everyone to Individual Plans  and this link?

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Consumer Resources

IRS Website on Tax Provisions for Large Employers

ObamaCare mandate NOT a job killer  – Washington Post 8.12.2015

Wikipedia on Employer Mandate

Health Care Reform 2015 Compliance Check List (Arroyo Insurance Services)


Related Pages in AB 1083 – PPACA Section

Final Regulations 2.9.2015   Forms 1094   & 1095

Mandatory Paperwork under Health Care Reform

W-2 Reporting

Medicare Enrolled Employees – Reporting


Five ACA Facts for Applicable Large Employers


Some of the provisions of the Affordable Care Act only affect your organization if it’s an applicable large employer. An ALE is generally one with 50 or more full-time employees, including full-time equivalent employees.


The vast majority of employers will fall below the ALE threshold number of employees and, therefore, will not be subject to the employer shared responsibility provisions.


If you are an ALE, here are five things to know:


  • Applicable large employers have annual reporting responsibilities. You will need to provide the IRS and employees information returns concerning whether and what health insurance you offered to your full-time employees.
  • If you’re an applicable large employer that provides self-insured health coverage to your employees, you must file an annual return reporting certain information for each employee you cover.
  • ALEs must either offer minimum essential coverage that is affordable and that provides minimum value to their full-time employees and their dependents, or potentially make an employer shared responsibility payment to the IRS.  Learn more about the employer shared responsibility provision.
  • You may be required to report the value of the health insurance coverage you provided to each employee on their Form W-2.
  • If you’re an applicable large employer with exactly 50 employees, you can purchase affordable insurance through the Small Business Health Options Program (SHOP).


For more information, see the Affordable Care Act Tax Provisions for Employers page on


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