With the default inputs (Number of Full-Time Employees 0; Number of Full-Time Equivalent Employees 0; Part-Time Hours (PT Hours) 0; Single Loss Expectancy ($) $100; Exposure Rate (0-100%) 100%; Annualized Frequency (0-1) 0.5), this calculator returns ALE Status No, Full-Time Equivalent (FTE) 0.00 and Annual Loss Expectancy ($) $50.00.
To use this calculator, enter the number of full-time employees, full-time equivalent employees, and part-time hours. Additionally, provide the single loss expectancy, exposure rate, and annualized frequency to calculate the annual loss expectancy.
ALE Status: Full-Time Employees + (Part-Time Hours / 120) + Full-Time Equivalent Employees. If the total is 50 or more, the employer is an ALE.
Annual Loss Expectancy: Single Loss Expectancy × Exposure Rate × Annualized Frequency.
Consider a company with 40 full-time employees, 20 full-time equivalent employees, and 240 part-time hours. The single loss expectancy is $200, with an exposure rate of 80% and an annualized frequency of 0.4. The ALE status would be 'Yes', and the annual loss expectancy would be $64.
Being classified as an ALE has significant implications for compliance with the ACA. Regularly update your employee data and consult with a financial advisor if needed. Explore our Salary Calculator for more insights.