Employers with international employees may be subject to Affordable Care Act (ACA) requirements if they are classified as Applicable Large Employers (ALEs). An ALE is defined as an employer that had an average of at least 50 full-time employees (or equivalent) during the previous calendar year.
In determining ALE status, employers must count all employees globally, including both U.S.-based and international staff. However, the ACA’s reporting requirements and penalties apply primarily to full-time employees working in the U.S. For instance:
- U.S.-Based Full-Time Employees: ALEs must offer affordable health insurance coverage that meets minimum value standards to full-time employees (those working 30 hours or more per week) and their dependents. These employees must also be included in ACA filings, such as Forms 1094-C and 1095-C.
- Non-U.S.-Based Employees: While they are counted to determine ALE status, non-U.S.-based employees are generally excluded from coverage and reporting requirements because they are not U.S. taxpayers.
