ACA Overview

The Affordable Care Act requires certain employers, referred to as an 'Applicable Large Employer' (ALE), to offer health insurance coverage to full-time employees and their dependents.  A company is considered an ALE if it has at least 50 full-time employees or full-time equivalent employees.  Per the ACA, a full-time employee is someone who works a minimum of 30 hours per week.  A full-time equivalent employee is two or more part-time employees whose hours add up to meet the minimum full time requirement of 30 hours per week.  For example, if one employee works 10 hours per week and another employee works 20 hours per week, then their hours would equate to one full-time equivalent.  If you are not sure if your company qualifies as an ALE member, then you must consult with your company's CPA, Controller or an ACA Consultant.