Key Details of The New Affordable Care Act Requirements for ALEs

Key Details of The New Affordable Care Act Requirements for ALEs



An Important Law

The complexities of the Affordable Care Act (the “ACA”) concern many employers today. Learn more about the requirements of this important federal statute.

You’ll ensure that your business enterprise meets its obligations under the law. Just consider a few of these common questions and answers about basic ACA provisions, the employer mandate, reporting requirements and other issues.

I. Basic ACA Provisions

What does the Affordable Care Act involve?

Congress enacted the Affordable Care Act (“ACA”) in order to provide health care coverage for all citizens in the United States. This comprehensive federal legislation involves many complex requirements.

Does the ACA always remain the same?

No. The provisions of the ACA change from time to time as Congress enacts amendments to the law. Also, Congress decided to implement the Act in stages, so in 2015 some previously enacted provisions took effect for the first time.

Can you list some of the changes that took effect in 2015?

In 2015, a number of important provisions of the ACA took effect for the first time. An “employer mandate” occurred in 2015, for instance. Also, the federal government required employers to report some information relating to employee health care for the first time.


The Employer Mandate

II. The Employer Mandate

What does the “employer mandate” require?

Any employer classified as an ALE must offer health care coverage to full time employees and certain of their dependents. Failing to comply with this provision could result in fines against the employer.

What does the term “ALE” signify?

The ACA uses the term “ALE” to signify an “applicable large employer” covered by the legislation. In most cases, employers who hire 50 or more full time employees fall within this category. The rules for calculating an ALE status remain rather complex.

What purpose does the employer mandate serve?

The employer mandate seeks to prevent large companies from requiring their full-time employees to receive health insurance premium assistance from the government. If this situation occurs, a company classified as an ALE faces potentially stiff penalties under some circumstances.

What complexities exist in terms of identifying an ALE status?

Hiring a certain number of part-time employees may impact a company’s ALE designation. Also, having full-time employees working for related business entities sometimes impacts this issue. These situations might result in an “aggregated” number of employees from these sources for some companies, so the firm would indeed become an ALE. In some cases, compensated student interns and temporary employees also qualify as full-time employees.

How can I determine if my company holds ALE status?

Consult with a qualified attorney about your firm’s status if you harbor any doubts about this issue. If the government does classify your company as an ALE, you will need to comply with the ACA, or face possible sanctions.


Reporting Requirements

III. Reporting Requirements

What new reporting requirements went into effect in 2015?

In 2015, the Internal Revenue Code (“IRC”) Sections 6055 and 6056 imposed some new reporting requirements on employers. These rules will help the Treasury Department enforce employer mandates.

What does IRC Section 6055 require?

Employers must inform the IRS whether or not they offer the minimum required health insurance coverage to their employees. This provision applies to health plans that are self-insured and sponsored by an employer.

What reporting requirements arise under IRC Section 6056?

Any employer classified as an ALE must furnish a report about the health insurance coverage they offer to full time employees if employees use self-insured plans sponsored by the employer. The insurance company carries this responsibility when the company furnishes employees with fully insured plans.

Will this reporting requirement operate in a way similar to issuing a W-2 form?


What reporting forms should ALEs utilize?

ALE Employers sponsoring self-insured health plans for their employees can utilize two IRS forms: 1094-C to send information to the IRS, and 1095-C to summarize information for the IRS and employees.

Do non-ALEs use the same forms?

No. These employers may use 1094B and 1095B if they self-insure health plans. They basically utilize the same reporting forms as insurance companies.


ACA Issues

IV. Other Issues

Can my company issue special tax-free payments to employees to cover their premiums in non-employer sponsored health plans?

Not in most cases after January 1. 2014. The Internal Revenue Service has cautioned employers this type of incentive to employees may violate the ACA’s requirements for no annual limit, and so an excise tax of up to $100 per day per violation may result.

What if ACA provisions confuse my staff?

Discuss any questions with a qualified attorney. The provisions impact many companies in the US.


Credit for this small business article goes to NECHES FCU, Port Neches, TX.
Neches FCU is a leading Texas credit union and has an awesome team of professionals ready to service all members.
When the doors open at any of the 9 service outlets, the mission of “Ultimate Member Satisfaction” becomes the driving force for every employee.
They are known for a personal, dynamic and fast-paced work atmosphere, delivering a memorable service experience, and where all members are known by their name.

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The One Habit That Kills Productivity – And How to Stop It

One Habit That Kills Productivity – And How to Stop It

We are a nation of multi-taskers. Every day we are bombarded with so many things to do, sometimes we don’t know where to begin. Studies have been proven to show that lack of focus can actually affect your brain to the point of lowering your IQ points. For the longest time, we have thought that multitasking is good for managing time. We were sadly mistaken here. The saving grace is that you can turn this around. Here we’ll go over some easy ways to regain focus and productivity by up to 40%. So let’s get to it.

One Thing at a Time

One Thing at a Time


You’re really going for it on this new promotion you’ve been working on and it happens. You have a brilliant idea that comes into your mind and you act on it immediately so you don’t forget. This is the critical error that keeps us bound to the multitasking habits we are breaking here. If you have something that is really a great idea or notion, write it down and return to your task. This way you’ll stay focused on the task at hand while retaining your genius. Use what note system works best for you.

Stay committed to the task

Stay committed


This goes hand in hand with doing one thing at a time. We all know that we can be too busy for just one task sometimes. But, you can commit by designating a specific amount of time to the project. Break up your workload into 30 minute shifts with small 5-10 minute breaks. Doing this will give you time to be creative and double check anything that may be missed otherwise. Just dedicate your allotted time to one thing before committing to the next task. This is an effective way to stay on task, while having time for others.

Create a controlled workspace

A controlled workspace


We can all become easily distracted by many things in a day. With all of the technology around us daily, co-workers, friends and family, it can be easy to blame it on these things. If you work from an office try turning off your notifications for social media. If you can, do this with your email notifications. Leave a note on your door or cubicle to signify (do not disturb.) If you work from home, make sure that you have clear work hours specified for family. Keep the door closed to keep noise to a minimum and turn your phone to silent. You are in control.

Take some ‘me’ time

Me time


With all of the many distractions at our reach, we often forget to just be. Take the time to shut out all distractions and listen to your thoughts. This is probably the most powerful thing in this list, since it helps immensely for relaxation. Studies have shown that the average human has a shorter attention span than a common goldfish. Quiet reflection is the only way to go deeper. Meditation is simply being aware of the present and focusing, here and now. You’ll thank yourself.

Group similar tasks together

Group similar tasks together


If you have many things to do that are similar, like returning messages or emails, do them in groups. If you have numerous emails, prioritize your list so you are focused on only work related ones. Keep you allotted time focused on one group, then move to the next. Do your many tasks in a project-based context, instead of as they arrive in your inbox. This will save a lot of time sorting through time-killing emails. Think of it as a pie and each group is a slice.

If you have help, use it

Leverage the support of others


We all go back and forth with the same old habits that we know we shouldn’t. If you find yourself unable to get to that place of focus yourself, have co-workers, friends or family hold you to your goals. The constructive criticism of close people in your daily life will help you maintain your edge. The great thing about this approach is that the people close to you will hold you up to it. They will typically be more helpful in creating needed space as well. They will become your support system until you don’t need it as much.

Don’t accept every task

Turn down unnecessary tasks


If you have ambition, don’t confuse it with over shooting your aim. If you have multiple projects to handle, (and who doesn’t?) finish them completely before moving on to the next thing. You can easily become bogged down with stress and work if you do not pace you assignments. A firm but fair ‘no’ to yourself here will go a long way to helping your productivity. You’d be amazed at the results of a good positive “no way.”

Let’s get the job done!

Thanks so much for visiting our Blog. This post was written specifically for anyone doing their business taxes, or using an accounting professional.

When sending out your returns this year, considering using an eFile provider to file 1099 misc online. For those of you new to the solution, and looking for a reliable option, consider an industry leading service like They are the industry’s standard bearer. Even if you choose not to use them, you can compare other providers’ quality to theirs. They do it all. They will do the filing 1099 misc forms for you. They will print and deliver your tax forms to recipients too. This alone will save you countless hours of stress and work… which could be spent on more productive items for your business. Their video is shown here, if you want to hear more about them.

Keep an eye out for our next post!


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