By Carol E. Potaczek, J.D.
The IRS has published five facts about of the Patient Protection and Affordable Care Act (ACA) (P.L. 111-148) that it believes are important for applicable large employers, or ALEs, to know. An ALE is generally one with 50 or more full-time employees, including full-time equivalent employees, and the IRS points out that the vast majority of employers will fall below this threshold number, meaning that they are not be subject to the employer shared responsibility provisions set forth in ACA Sec. 1513(a).
Here, according to the IRS, are five things it wants ALEs to be aware of:
- Because ALEs have annual reporting responsibilities, as per ACA Sec. 1514(a), they must provide the IRS and employees information returns concerning whether and what health insurance is offered to full-time employees.
- ALEs that provide self-insured health coverage to your employees must file an annual return reporting certain information for each employee they cover.
- ALEs must either offer minimum essential coverage that is affordable and that provides minimum value to their full-time employees and their dependents, or potentially make an employer shared responsibility payment to the IRS.
- ALEs may be required to report the value of the health insurance coverage they provided to each employee on their Form W-2.
- ALEs with exactly 50 employees can purchase affordable insurance through the Small Business Health Options Program (SHOP).
The IRS directs those seeking more information to the Affordable Care Act Tax Provisions for Employers page on IRS.gov/aca.
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