An Applicable Large Employer (ALE) is any employer that averaged 50 or more full-time employees, including full-time equivalent employees (FTEs), during the prior calendar year.
Whether an employer is an ALE is determined each calendar year, and generally depends on the average size of an employer's workforce during the prior year. If an employer has fewer than 50 full-time employees, including full-time equivalent employees, on average during the prior year, the employer is not an ALE for the current calendar year.
Full-Time Employee Definition
An employer is not considered to have more than 50 full-time employees (including full-time equivalent employees) if both of the following apply: The employer's workforce exceeds 50 full-time employees for 120 days or fewer during the calendar year, and the employees in excess of 50 employed during such 120-day period are seasonal workers.
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