ACA Applicable Large Employer Calculation Now Excludes Certain Veterans: Employment Law Manual, How to Updated

Author: Tracy Morley, XpertHR Legal Editor

Under a new amendment to the federal tax code, veterans who have health coverage under TRICARE or a Department of Veterans Affairs program need not be counted toward the 50-employee threshold for determining applicable large employer (ALE) status for Affordable Care Act (ACA) purposes. An ALE is subject to the ACA's employer shared responsibility mandate.

The amendment to Internal Revenue Code Sec. 4980H(c)(2) took effect July 31, 2015, but applies to coverage months beginning after December 31, 2013.

In light of this development, the Health Care Benefits: Federal section of the Employment Law Manual and the How to Determine Applicable Large Employer Status Under the Affordable Care Act tool have been updated. Plus, a Legal Timetable entry has been added.