What is Applicable Large Employer in SAP PA-BN - Benefits?

SAP Term: Applicable Large Employer

• Component: PA-BN

• Component Name: Benefits

• Description: An employer, or a group of employers, which has at least 50 full-time employees, including full-time equivalent employees, on average during the prior calendar year. In the United States, applicable large employers are required to file information returns with the Internal Revenue Service IRS and provide statements to their employees about the health insurance coverage the employer offered.

Smart SAP Assistant

• Key Concepts: 
  Applicable Large Employer (ALE) is a term used in the SAP Benefits (PA-BN) component to refer to an employer with 50 or more full-time employees, including full-time equivalent employees, in the previous calendar year. ALEs are subject to certain requirements under the Affordable Care Act (ACA). 
  
  How to use it: 
  The SAP Benefits (PA-BN) component allows employers to manage their ALE status and comply with ACA requirements. Employers can use the component to track employee hours, calculate full-time equivalent employees, and determine if they are an ALE. 
  
  Tips & Tricks: 
  When using the SAP Benefits (PA-BN) component, employers should ensure that their employee data is up-to-date and accurate. This will help them accurately determine their ALE status and ensure compliance with ACA requirements. 
  
  Related Information: 
  For more information on ALEs and ACA requirements, employers should consult the Internal Revenue Service website. Additionally, employers can contact their local tax advisor for assistance in understanding their obligations under the ACA.