Understanding Your ACA Responsibilities and How RMC Group Can Help with Employee Benefits

Navigating ALE Status: What Growing Businesses Need to Know

As your business grows, new responsibilities may arise—one of the most significant being the requirement to comply with the Affordable Care Act (ACA). If your company attains Applicable Large Employer (ALE) status, you must meet specific reporting and health coverage requirements. Failure to comply can result in penalties and administrative headaches. In this article, we’ll break down how ALE status is determined, what it means for your business, and how RMC Group can help you navigate employee benefits.

How is ALE Status Determined?

Your ALE status for a particular year is based on the average number of full-time employees (including full-time equivalent employees) in the previous calendar year. If your business averaged at least 50 full-time employees, including full-time equivalents, during the previous calendar year, you are considered an ALE for the year. Employers in a control group must count all employees of the employers in the controlled group to determine their ALE status.

What Happens Once You Become an ALE?

Becoming an ALE means you are subject to two key ACA provisions:

• Employer Shared Responsibility: You must offer affordable, minimum-value health coverage to full-time employees and their dependents. Failure to offer affordable, minimum-value coverage will result in a penalty.
• Employer Reporting: You must track employee coverage and file IRS forms 1094-C and 1095-C.

Grace Period for New ALEs

Newly designated ALEs have a limited non-assessment period—a grace period from January to March to comply before penalties apply. However, this only applies if you weren’t previously offering insurance.

Staying Compliant and Managing Employee Benefits

Navigating ALE requirements can be complex, but you don’t have to do it alone. RMC Group specializes in helping businesses like yours design and implement cost-effective employee benefits solutions.

We offer:

• Custom Benefits Planning: Tailored strategies to meet ACA compliance while optimizing employee coverage.
• Compliance Support: Assistance with reporting requirements to reduce administrative burden.
• Cost-Saving Solutions: Helping you maximize tax credits and lower overall benefits expenses.

Take the Next Step

If your business is approaching or has reached ALE status, now is the time to ensure compliance and create a benefits plan that supports both your employees and your bottom line. Contact RMC Group today to learn how we can help you stay compliant and competitive, call 239-298-8210 or email health@rmcgp.com.

You can also check out our Guide to Offering Health Benefits for more information.