Veteran Exclusion for ACA Compliance_Integrity Data

Content updated on April 24, 2018

Since 1919, the number 11 has been at the center of awareness of veterans in the United States. Remembering that on the 11th hour of the 11th day of the 11th month of 1918, the Allies and Germany signed the armistice that ended fighting in World War I. Therefore, Americans honor all veterans of military service every November 11.

This Veterans Day, for U.S. business owners building their awareness of what compliance with the Affordable Care Act (ACA) means, two other numbers surface with respect to veterans: 50 and 100.

These numbers mark thresholds in the ACA employer mandate. Both have to do with what in ACA compliance lingo is called “determining ALE status.” ALE stands for Applicable Large Employer.

  • When a business’s employee count is 50 or more full-time employees (including full-time equivalents), all ACA rules for employers and steep non-compliance penalties apply to that employer.
  • If a business’s employee count is 50 to 99 full-time employees (including full-time equivalents) for the current tax year, only some ACA rules and two fewer ACA non-compliance penalties apply to that employer.

Because of a law passed in 2015 that amended the definition of an ALE, businesses that employ veterans can make certain exemptions when determining their ALE status. The amended ALE definition is retroactive to January 1, 2014. Bus