Congratulations! When a company hits the 50 employee mark, it’s not by chance or luck. However, that success will require some additional reporting and attention. In this article, we’ll introduce you to the additional requirements that you’ll be subject to.
Applicable Large Employer
Employers with 50 or more full-time employees are referred to as Applicable Large Employers (ALEs). If your plan puts you over this mark in the near future, you should start planning for it now. Consult a qualified attorney or HR consultant, attend training on the topic and reach out to your contacts at other ALEs.
Affordable Care Act
The Affordable Care Act (ACA) imposes additional regulations on ALEs. The Employer Shared Responsibility Provision may require ALEs that don’t offer health insurance to its qualified employees to pay a fee. It also requires annual reporting of health coverage and enrollment on forms 1094-C and 1095-C.
Family Medical Leave Act
Companies with 50 or more employees are subject to the Family Medical Leave Act (FMLA). This requires employers to provide employees with up to 12 weeks of unpaid, job protected leave per year.
If your company is a federal contractor, you’ll be required to have an Affirmative Action Plan and to complete and submit an EE0-1 report to the US Equal Employment Opportunity Commission. This report includes employee demographics by ethnicity, race and gender.
Form 5500 is filed annually to report information on employee benefits, including insurance and pension plans. These plans include medical, dental, 401k and retirement plans subject to the Employee Retirement Income Security Act (ERISA).
Many states have laws and regulations specific to ALEs. You will want to research and determine if your company is specific to any state laws or regulations.
Again, congratulations! Reaching 50 (employees) is a big milestone.
- Prepare in advance of crossing the mark
- Review your benefit programs and work with your healthcare and retirement plan suppliers to comply with the ACA requirements
- Implement the provisions of the FMLA
- Review the Form 5500 filing requirements and make sure that these forms are prepared and timely filed.
- Research and review any state laws specific to ALEs
- Build a team of trusted advisors and consultants to help you navigate these new waters