Benefits & ACA
Benefits & ACA Compliance Tools
Free tools for ACA employer-mandate (ALE) status, coverage affordability, and COBRA deadlines.
Reviewed by theComplianceToolsLibrary Editorial Team · Last updated
Benefits compliance for employers centers on the Affordable Care Act (ACA). The ACA's employer shared-responsibility rules apply only to Applicable Large Employers (ALEs) — those with 50 or more full-time and full-time-equivalent employees — so the first question is always whether you're an ALE.
If you are, two more questions follow: is the coverage you offer affordable (measured against an annually adjusted percentage of employee income), and are you meeting notice obligations like COBRA continuation coverage? Each has firm deadlines and real penalties, and several figures adjust every year.
Key concepts
- Applicable Large Employer (ALE)
- An employer with 50 or more full-time plus full-time-equivalent employees, subject to the ACA employer mandate.
- Full-time equivalent (FTE)
- Part-time hours combined into full-time-equivalent counts (generally part-time hours in a month divided by 120).
- Affordability safe harbor
- Coverage is affordable if the employee's contribution for self-only coverage stays within the annual ACA percentage of their income.
- COBRA
- Continuation of group health coverage after a qualifying event, with strict notice and election deadlines.
Frequently asked questions
How do I know if I'm an Applicable Large Employer?
Add your full-time employees to your full-time-equivalent count across the prior year; an average of 50 or more makes you an ALE. The ACA Full-Time Equivalent Calculator does the math.
What does ACA affordability mean?
Self-only coverage is affordable if the employee's required contribution does not exceed the annually adjusted ACA percentage of their household income (measured through a safe harbor).
When do COBRA deadlines start?
They run from the qualifying event and related notices — employers generally must provide an election notice within 14 days of being notified, and qualified beneficiaries have 60 days to elect.