Calculating Whether Your Higher Education Institution Is an “ALE”
By enrollment size, the responses were:
- Under 500 students – 42.11%
- 500 – 1,700 students – 66.67%
- Over 1,700 students – 75.00%
ALEs have significant reporting requirements, including Form 1095-C. That means it is crucial for higher education institutions to document whether or not they have more than 50 full-time equivalent (FTE) employees for years beginning with 2014.
We’ve talked with many institutions that believe they are not an ALE because they don’t realize that “FTE” includes more than just “full-time employees.” Unfortunately, miscalculating can result in potentially large penalties.
We encourage you to download the 2016 Higher Education Tax Reporting Trends Project white paper for more on this topic, including information on a new Employer Shared Responsibility Provision (ESRP) Estimator from the Taxpayer Advocate Service. The white paper also includes data and insight on other key higher education tax reporting issues.Sign up for e-news and alerts