Zane Benefits Publishes New Information on Applicable Large Employers

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Two Common Mistakes Employers Make when Determining if they are an ALE for the ACA Employer Mandate

Today, Zane Benefits, the number one online small business health benefits solution, published new information on applicable large employers.

According to Zane Benefits’ website, starting in 2015, Applicable Large Employers (ALEs) will be subject to the "employer mandate" -- the Affordable Care Act requirement to either offer minimum, affordable health insurance by 2015 or be subject to penalties.

An ALE is any employer with 50+ full time equivalent employees. If a company has less than 50 employees, it is not an ALE. If a business has 50 or more employees, it is probably are an ALE.

But for those employers on the cusp of 50 employees, or with a mix of full time, part time, and seasonal employees, the calculation can get more complicated.

An ALE is any control group employer that averaged 50 or more full-time employees, plus full-time equivalents, on business days during the preceding calendar year. For example, an employer could be an ALE in 2015, but not in 2014. If the company employed 50 or more full-time employees on average during the preceding calendar year, they are an ALE for the current calendar year.

An employer is NOT an ALE if the employer:

  • Employed less than 50 full-time employees on average during the previous calendar year, or
  • Employed more than 50 full-time employees no more than 120 days during the previous calendar year due to a seasonal workforce.

The first mistake employers commonly make when determining ALE status is not counting part-time employees.

  • “We have only 45 full-time employees”
  • "We'll reduce everyone's hours because only full-time employees count"

The second mistake employers make when determining if they're an ALE is not totalling all employees employed under all business entities.

  • "If I divide my company into several smaller companies I can avoid the employer mandate"
  • "I own several businesses under the same parent company; how do I determine if I'm an ALE?"

Click here to read the full article.


About Zane Benefits
Zane Benefits was founded in 2006 to provide a revolutionized SaaS (Software-as-a-Service) administration platform ("ZaneHealth") for defined contribution health care. The flagship software provides a 100% paperless administration experience to small businesses and insurance professionals that want to offer better health benefits without a traditional group health insurance plan at lower costs. For more information about Zane Benefits, visit

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Christina Merhar
Zane Benefits
+1 (800) 391-9209 Ext: 6725
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