How do I know if I am an Applicable Large Employer?
157 views | Last modified 1/21/2023 4:11:13 AM EST | Added by TaxBandits Team

Applicable To
94X 1099 W-2 ACA W-4

If you’re an employer having an average of at least 50 full-time employees, including full-time equivalent (FTE) employees, during the prior full calendar year, then you are considered an ALE for the current calendar year and should use Form 1095-C for ACA reporting.
To determine the size of your workforce for a calendar year, add up the number of full-time employees who worked each month last year as well as the number of full-time equivalent employees (FTE) who worked. Then, divide the total by 12 to know the size of your workforce.
Note: Multiple organizations may form an ALE, or a single organization may form one.  If you believe your organization is an ALE, you’re then subject to the employer shared responsibility provisions and the employer information ACA reporting requirements.
If you fail to comply with the requirements, you will be penalized by the IRS. To avoid penalties, make sure you file 1095-C forms accurately on or before the due date. Want to e-file Form 1095-C hassle-free? TaxBandits is here to help you with the electronic filing of 1095-C.  Create a FREE account at TaxBandits and e-file 1095-C before the due date.

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