ACA Compliance Overview

The Affordable Care Act (ACA) continues to require employer compliance with several key provisions. Non-compliance may result in IRS penalties.

When you partner with BBSI and leverage our benefits offerings, we help ensure your business remains compliant with ACA requirements through proactive guidance, eligibility tracking, and accurate reporting.

Applicable Large Employer (ALE) Designation Companies averaging 50 or more full-time equivalent (FTE) employees in the prior calendar year are considered ALEs. New employers are ALEs if they are expected to and do employ 50+ FTEs in their first year. Controlled groups (businesses with shared ownership) must combine FTE counts across all entities. If the total is 50+, each company is considered an ALE and must certify status with BBSI. Action Required: If you haven’t submitted your 2026 ALE designation (for all applicable companies), contact your BBSI representative immediately. Inaccurate reporting may impact IRS Section 6056 filings.

Employer Shared Responsibility ALEs must offer affordable Minimum Essential Coverage (MEC) to at least 95% of full-time employees. For 2026, at least one plan must cost employees no more than $129.89/month (employee-only coverage) to meet the Federal Poverty Level (FPL) safe harbor. If not designated as an ALE, contribution rates follow your selected Benefits Strategy. This requirement applies beginning January 1, regardless of your plan year.

Benefits Eligibility Employees working 30+ hours/week should be classified as full-time regular and offered BBSI-sponsored benefits. Review employee classifications during your Benefits Strategy Period or at Renewal.

IRS Section 6056 Reporting Applicable Large Employers (ALEs) are required to file Forms 1094-C and 1095-C and provide 1095-C forms to employees. BBSI will manage this process once ALE designation is confirmed.

Partner with BBSI

Stay compliant, avoid penalties, and ensure your business is aligned with federal requirements - all while providing competitive benefits that support your workforce.