Applicable Large Employer (ALE)
50 – 99 FTEs
Employers with 50 or more full-time equivalent employees (FTE) are considered “large” employers under the ACA. Section 4980H of the ACA imposes penalties on large employers who fail to offer health care coverage or offer coverage that is deemed inadequate under the law. Health care coverage is not considered “affordable” if the insurance offered is more than 9.5% of an employee’s household income or if the cost of the coverage brings an employee below poverty level.