ACA large employer penalties West Virginia

West Virginia companies crossing the 50-employee mark must understand ACA large employer penalties West Virginia businesses face if coverage isn’t offered or isn’t affordable. At Songer Insurance in Beckley, we help local employers meet ACA rules, control costs, and build compliant benefit strategies. Explore our Group Health Insurance options or contact us for a compliance review.

Who is an Applicable Large Employer (ALE)?

You’re an ALE if you averaged 50 or more full-time or full-time equivalent (FTE) employees last calendar year.

• Full-time: 30+ hours per week
• FTEs: Part-time hours combined to equal full-time headcount

Need help calculating FTEs? See our Employee Benefits page or reach out and we’ll run the numbers with you.

What coverage must ALEs offer?

• Minimum Essential Coverage (MEC): Offer to at least 95% of full-time employees.
• Affordability: Employee cost for self-only coverage must be at or below the IRS affordability threshold for the year (use safe harbors like W-2, Rate-of-Pay, or Federal Poverty Line).
• Minimum Value: The plan should cover at least 60% of allowed costs.

We routinely benchmark plans and contribution strategies for employers in Beckley and across southern WV—start here: Group Health Insurance.

Penalties if coverage isn’t offered or isn’t affordable

The “A” penalty (no offer)

If you don’t offer MEC to at least 95% of full-time employees and any one of them gets a Marketplace subsidy, you may owe an annualized penalty calculated per full-time employee (minus the first 30).

The “B” penalty (offer fails affordability or minimum value)

If you do offer coverage, but it’s not affordable or doesn’t meet minimum value, you may owe a per-affected-employee penalty for each full-time employee who receives subsidized Marketplace coverage.

Common mistakes that trigger penalties

• Miscounting FTEs or misclassifying variable-hour employees
• Missing the 95% offer threshold
• Setting contributions that exceed the affordability limit for lower-wage roles
• Failing to file or fix errors on Forms 1094-C/1095-C

How Songer Insurance keeps Beckley & southern WV employers compliant

• FTE/ALE status analysis and safe-harbor selection
• Plan design & contribution modeling for affordability
• Level-funded and traditional group plan comparisons
• Ongoing audits before renewal to prevent penalties

Learn more on our Employee Benefits page or schedule a consult.

Key takeaway

Once you hit 50+ FTEs, ACA compliance isn’t optional. A smart contribution strategy, correct safe harbor, and accurate filings can eliminate most penalty exposure while helping you recruit and retain talent in West Virginia.

Helpful resources

• Group Health Insurance – Songer Insurance
• Employee Benefits – Songer Insurance
• Contact Songer Insurance