ALE (Applicable Large Employer)
An applicable large employer averaged 50 or more full-time employees plus equivalents in the prior year and is subject to the ACA employer mandate.
ALE status determines whether the Affordable Care Act employer shared responsibility rules apply: an ALE that fails to offer affordable, minimum-value coverage to enough full-time employees can owe IRS assessments, and ALEs must file Forms 1094-C and 1095-C annually.
Joining a PEO does not merge you into the PEO’s headcount for this purpose. ALE status is determined at the employer level using common-law employment and controlled-group rules, so a 60-person company is an ALE inside or outside a PEO. What a PEO changes is administration: hours tracking for variable-hour staff, affordability testing, and 1095-C preparation. Confirm in the service agreement which party prepares the filings and which party pays a penalty caused by administrative error.