ALE Determination
- Detailed payroll records in a structured format (e.g., Excel spreadsheet) with clearly labeled columns showing all applicable hours by employee by month or pay period for 2024. Each employee record must include: Employee Name or ID, Date Range or Month, and Total Hours Worked.
- (Optional) Monthly employee counts for 2024 for any employees not included in the hourly data.
- Please add your company name as a prefix to all uploaded files.
Step 1: Company Y employs 40 full-time employees each calendar month during 2018.
Step 2: Company Y also employs 20 part-time employees each calendar month during 2018, with each part-time employee working 60 hours per month.
Step 3: Calculate combined part-time hours: 1,200 hours per month [20 × 60 = 1,200].
Step 4: Convert to full-time equivalent (FTE): 10 FTE employees [1,200 ÷ 120 = 10].
Step 5: Calculate annual totals:
• Full-time employees: 480 [40 × 12 months = 480]
• Full-time equivalent employees: 120 [10 × 12 months = 120]
Step 6: Determine average monthly employee count: 50 [(480 + 120 = 600) ÷ 12 = 50].
Conclusion: Although Company Y has only 40 full-time employees, it qualifies as an ALE for 2019 because its average monthly employee count (including FTE) exceeds 50.
