While there have been changes to the ACA, many provisions continue to be in effect and failure to comply with the regulations may result in penalties. The information below is current as of December 2024. Below are provisions that could affect your company.

• Applicable Large Employer (ALE) Designation— Companies with a monthly average of 50 or more full-time equivalent employees (FTEs) during the previous calendar year are considered ALEs and are subject to certain ACA regulations in the current year. Additionally, new employers that did not exist in the previous calendar year will be considered ALEs if they are reasonably expected to average and actually employ at least 50 full-time employees during business days in their first year of existence.
  • For companies with shared ownership, a controlled group may exist. A controlled group exists when companies have one or some of the same owners or companies are owned by other companies. When a controlled group exists, ALE status is determined by aggregating the FTE count of all companies within the controlled group. If the entire controlled group had 50 or more FTEs during the previous calendar year, ALL the companies within the controlled group are ALEs and should certify their ALE status independently during the TriNet ALE designation period. Further, failure to identify other controlled group members accurately can result in IRS Section 6056 Reporting (discussed in more detail below) inaccuracies. Thus, if you have questions or uncertainty about your ALE designation, contact your legal or tax advisor.

What this means for you:

• If your company is an ALE, you must submit an ALE designation to TriNet. If you have not accurately designated your ALE status for 2025 (or you did not designate the ALE status for ALL of the companies you represent), contact TriNet at Connect360@TriNet.com or 800.638.0461 as soon as possible but no later than December 16, 2025 to make this important update.

• Benefits Eligibility – You should classify worksite employees scheduled to work a minimum of 30 hours weekly (on average) as “full-time regular employees” who will be eligible for TriNet-sponsored benefits. During the Benefits Strategy Solutions period, all clients should review worksite employees’ employment classifications to ensure accurate benefits eligibility.
• Employer Shared Responsibility Mandate—All ALEs are required to offer minimum essential coverage to at least 95% of full-time worksite employees,  and that coverage must meet certain standards, such as affordability, to avoid potential penalties.
• To assist with the avoidance of such penalties, if your company has designated as an ALE and your company contribution strategy isn’t already compliant with the ACA’s affordability requirement, worksite employees will see a medical plan option with an employee-only coverage level contribution rate that meets the ACA’s affordability requirements using the Federal Poverty Level (FPL) safe harbor.
• To meet the 2025 Federal Poverty Level (FPL) safe harbor and avoid potential penalties,
  • You will offer at least one plan to all eligible worksite employees, and
  • You will fund enough so that the maximum amount a worksite employee will pay does not exceed $101.93 per month (for the employee-only coverage level).
  • If your company has not been designated as an ALE, the worksite employee contribution rate for all medical plan options will be based on the Benefits Strategy Solutions you select. If you need to designate for the current year, do so as soon as possible to ensure you are offering an affordable plan.
  • The Employer Shared Responsibility provision applies to ALEs at the start of each calendar year, regardless of when the company’s benefits plan year begins.

• Section 6056 Reporting Requirements – All companies that are ALEs are subject to the annual IRS Section 6056 reporting requirements. As part of the TriNet ACA solution, if you submit an ALE designation to TriNet, we will coordinate the following on your behalf:
  • Filing Form 1094-C and 1095-C with the IRS
  • Sending Forms 1095-C directly to worksite employees home addresses on file

For more information about the ACA , visit TriNet.com/A