Since 2015, the Affordable Care Act (ACA) has required applicable large employers (ALEs) to offer their full-time employees health coverage or pay one of two shared responsibility penalties (ESRP or “play-or-pay”). An employer is an ALE if it employs 50 or more full-time or full-time equivalent employees. Final IRS regulations provide guidance to help employers determine if they are ALEs and what they must do to avoid penalties.
Download this comprehensive guide, updated Feb. 2025, to explore:
- Which workers must be counted
- What hours must be counted
- If an employer is large enough for penalties to be an issue
- Applying the requirement to offer coverage
- Applying the requirement to offer affordable, minimum value coverage
- Which full-time employees must be offered coverage
This information has been prepared for UBA by Fisher & Phillips LLP. It is general information and provided for educational purposes only. It is not intended to provide legal advice. You should not act on this information without consulting legal counsel or other knowledgeable advisors.
