> ## Documentation Index
> Fetch the complete documentation index at: https://docs.encoreos.io/llms.txt
> Use this file to discover all available pages before exploring further.

# ACA compliance and FTE tracking

> Track Affordable Care Act ALE status by tax year, calculate full-time equivalent employee counts, and monitor 1095-C and 1094-C filing readiness.

ACA Compliance tracking is available at route `/hr/benefits/aca`, guarded by `hr.benefits.admin` permission.

## Overview

The ACA Compliance page tracks Applicable Large Employer (ALE) status for a selected tax year. A dropdown lets the admin select the current year or up to two prior years. The ALE Status card shows whether the organization meets ALE status based on stored FTE count, with a built-in FTE Calculator dialog that accepts full-time employee count and total part-time monthly hours. Filing Status shows employees tracked, 1095-C generation flag, and 1094-C generation flag for the selected year. Saving a calculated FTE count upserts the compliance record for that year.

## FTE calculation

The FTE Calculator uses the IRS look-back method:

```text theme={null}
FTE = full-time employees + (total part-time monthly hours ÷ 120)
```

FTE counts save with two decimal places, so fractional results store correctly. For example, 50 full-time employees plus 100 part-time monthly hours yields **50.83 FTE**. The page flags an organization as an ALE when the calculated FTE reaches the 50-employee threshold.

## Who it's for

`hr.benefits.admin` — HR benefits administrators only.

## Before you start

* ACA compliance data for a year must be initialized via the FTE Calculator before status is shown.
* Users need `hr.benefits.admin` permission.

## Steps

<Steps>
  <Step title="Select tax year">Use the year dropdown in the page header to choose the relevant tax year.</Step>
  <Step title="Calculate FTE">Click **Calculate FTE** or **Recalculate**, enter full-time employee count and total part-time monthly hours, and review the calculated FTE result.</Step>
  <Step title="Save ALE status">Click **Save** to persist the FTE count and ALE status for the selected year.</Step>
  <Step title="Review filing status">Check the Filing Status card for employees tracked, 1095-C, and 1094-C generation flags.</Step>
</Steps>

## Key concepts

| Term                          | Meaning in code                                                                                  |
| ----------------------------- | ------------------------------------------------------------------------------------------------ |
| `ALE_THRESHOLD_FTE`           | Constant imported from `../../types/aca`; the FTE threshold that determines ALE status           |
| `ACA_FILING_STATUS_LABELS`    | Display labels for each filing status value                                                      |
| `ale_status`                  | Boolean field on the compliance record indicating ALE classification                             |
| `fte_count`                   | Calculated full-time equivalent employee count stored per tax year (supports two decimal places) |
| `ACA_PART_TIME_HOURS_DIVISOR` | Constant (`120`) used to convert total part-time monthly hours into full-time equivalents        |

## Related

<Columns cols={2}>
  <Card title="Human Resources" icon="users" href="/hr/overview">
    Human Resources core overview.
  </Card>

  <Card title="Governance & parity" icon="scale-balanced" href="/governance/index">
    Documentation coverage and governance.
  </Card>
</Columns>

<Note>
  This page documents shipped product behavior. It is not medical, legal, or
  billing advice. Verify against your organization's policies and applicable
  regulations before using it for clinical, compliance, or billing decisions.
  Protected health information (PHI) shown in the product is governed by your
  tenant's access controls and is never exposed in this documentation.
</Note>

<Accordion title="Documentation sources">
  * src/routes/hr.tsx
  * src/routes/hr/benefits-routes.tsx
  * src/cores/hr/benefits/pages/admin/ACACompliancePage.tsx
  * src/cores/hr/benefits/hooks/useACACompliance.ts
  * src/cores/hr/benefits/lib/acaFte.ts
  * src/cores/hr/benefits/types/aca.ts
</Accordion>