Surpassing 50 FTEs? Your 2025 ACA Compliance Playbook

When your average full‑time and full‑time‑equivalent headcount tops 50, the IRS instantly classifies you as an Applicable Large Employer (ALE)—and a brand‑new world of ACA compliance rules snaps into place. Ignore even one of them and you expose your growing company to five‑ and six‑figure penalties that siphon cash away from expansion, hiring, and innovation.

Why the Applicable Large Employer Threshold Matters

Even seasoned HR and finance teams can be surprised by how many boxes must be ticked the moment the ALE label applies. Start preparing now, and you transform what feels like a regulatory mountain into a manageable checklist.

• Offer Minimum Essential Coverage (MEC) to 95 % of full‑time employees and their dependents.
• Keep coverage “affordable.” For the 2025 plan year, employee‑only premiums can’t exceed 8.39 % of W‑2 wages.
• File Forms 1094‑C and 1095‑C every January, documenting your ACA compliance to the IRS line by line.

2025 ACA Reporting Deadlines & How G&S Accountancy Keeps You On‑Time

Your filing calendar drives ACA compliance success. Miss a step and late‑file penalties (up to $310 per form) start piling up.

Pro Tip: Drop these dates into Outlook or Google Calendar the moment you finish reading. Your future‑self will thank you.

Penalties for Getting ACA Compliance Wrong

A lapse in ACA compliance isn’t just a slap on the wrist—it’s a direct hit to your P&L.

*Indexed amounts per IRS Notice 2024‑87.
A 75‑person trucking company ignoring ACA reporting for only one year can face a six‑figure bill—before interest starts compounding.

Our ACA Code of Ethics

A rock‑solid compliance partner requires more than software—it demands a culture of precision and transparency.

1. Accuracy First – Every figure passes a CPA and an Enrolled Agent double‑check.
2. Confidentiality & Data Security – SOC‑2‑aligned controls plus AES‑256 encryption keep PHI/PII under digital lock‑and‑key.
3. Proactive Transparency – Real‑time dashboards mean you see what we see, every single day.

6 Ways G&S De‑Risks Your ACA Transition

Crossing the 50‑FTE line is inevitable for a thriving company. The key is crossing it with eyes wide open.

1. Threshold Forecasting – We parse payroll hours to flag the exact month you’ll hit 50 FTEs, giving HR and finance time to budget.
2. Safe‑Harbor Strategy – Side‑by‑side W‑2, Rate‑of‑Pay, and FPL tests pinpoint the cheapest safe harbor, often shaving 10–15 % off subsidy exposure.
3. Waiver Evidence Tracking – Signed waivers flow into a secure portal, creating an audit trail even the toughest IRS agent can’t poke holes in.
4. In‑House ACA Auto‑Filer – Our codebase generates schema‑perfect XML that glides through Publication 5165 checks—zero rejection headaches.
5. Penalty Abatement & Appeals – Received a Letter 226‑J? We draft bulletproof Form 14764 responses and have slashed ESRP bills by up to 85 %.
6. Continuous Monitoring – Monthly dashboards flag dips below the 95 % offer line so you can course‑correct before the IRS notices.

Proof in Numbers

• 12 + ALE transitions since 2021—100 % filed on time.
• 5,000 + 1095‑Cs delivered with zero XML errors.
• $420k + in ESRP penalties wiped out for clients in 2024 alone.

Conclusion: Turn ACA Compliance into a Growth Advantage

The Affordable Care Act wasn’t designed to slow ambitious employers—but ignoring its rules certainly can. By treating ACA compliance as a proactive strategy instead of a back‑office chore, you protect cash flow, maintain employee goodwill, and keep growth plans firmly on track.

Ready to transform compliance pain into operational peace of mind? Schedule a free 30‑minute ACA Compliance Check‑Up with AJ Singh, CPA at G&S Accountancy Inc. today, and see how effortless employer reporting can be when experts have your back.

Frequently Asked Questions (FAQs)

What is considered a full-time equivalent (FTE) employee under ACA rules?

An FTE is any combination of part-time employees whose total hours equal those of a full-time employee (30 hours per week or 130 hours per month). For example, two part-time employees working 15 hours/week each = 1 FTE. The total count helps determine whether you’re an Applicable Large Employer (ALE).

Do I have to offer health insurance to all employees once I hit 50 FTEs?

No. You are required to offer Minimum Essential Coverage (MEC) to at least 95% of your full-time employees and their dependents. Part-time workers and seasonal staff typically fall outside of this requirement.

What are the differences between Forms 1094-C and 1095-C?

Form 1095-C is the statement each full-time employee receives outlining the health coverage offered. Form 1094-C is the transmittal form submitted to the IRS summarizing all 1095-Cs issued and verifying your ALE status and compliance.

What if I miss the ACA reporting deadlines?

Missing ACA deadlines can result in penalties of up to $310 per form in 2025. If you’re found non-compliant with coverage requirements, you may also face Employer Shared Responsibility Payments (ESRPs) under section 4980H(a) or 4980H(b).