ALE (Applicable Large Employer)

Definition and Meaning:

An Applicable Large Employer (ALE) is a business with 50 or more full-time employees or their cumulative equivalent full-time hours during the most recent calendar year. ALEs are typically referenced in the US regulatory environment for payroll and human resource compliance, and they are of interest to global organisations managing their workforce from a compliance perspective.

International HR & Compliance Key Points

• Determining the healthcare obligations of employers.
• Impacts human resources compliance and the reporting of the workforce.
• Used by multinational companies (MNCs) that pay employees in the United States and provide employee benefits.
• A precise record of employee headcounts needs to be maintained to satisfy this requirement.
• Usually managed using current HR Management Systems (HRMS) and payroll systems.

Regulatory Compliance / Policy/ Regulation (India)

No statutory compliance exists for ALE in India.

ALE is governed under:

Affordable Care Act (ACA), USA – Employer Shared Responsibility provisions.

Indian companies having US employees or entities will monitor for ALE before determining compliance globally.