What is an Aggregated ALE Group?

What is an Aggregated ALE Group?

An Aggregated ALE Group consists of related companies that must be combined when determining ALE status, even if each individual company has fewer than 50 employees.

Companies with a common owner or that are otherwise related under certain rules of section 414 of the Internal Revenue Code are generally combined and treated as a single employer for determining ALE status. If the combined number of full-time employees and full-time equivalent employees for the group is large enough to meet the definition of an ALE, then each employer in the group (called an ALE member) is part of an ALE and is subject to the employer shared responsibility provisions, even if separately the employer would not be an ALE.

Key Point

Each ALE Member is required to file Forms 1094-C and 1095-C reporting offers of coverage to its full-time employees (even if the ALE Member has fewer than 50 full-time employees of its own).

When to Consider Aggregated ALE Group Status

  • Parent company with subsidiaries
  • Companies under common ownership
  • Related entities under IRC Section 414 rules

Related Articles

  • What is an Applicable Large Employer (ALE)?
  • Who is required to file 1095-C forms?
  • How do I file if I have multiple 1094-C subgroups?

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