ACA
ACA penalties start with a threshold you did not see crossing.
Kreto tracks your FTE count, ALE status and 1095-C filings, so a Letter 226-J does not arrive unexpected.
ALE threshold
Crossing 50 full-time equivalents.
Crossing 50 full-time equivalent employees makes you an Applicable Large Employer. Many employers find out from a Letter 226-J.
3,340 USD
IRS penalty · per employee
Source: IRC §4980H(a), 2026 amount (Rev. Proc. 2025-26)
ACA status, employer by employer.
- Bring payroll and benefits data in.Kreto reads your payroll and benefits enrollment to calculate FTE counts each month.
- ALE status.Kreto tracks your full-time equivalent count across entities and shows when you approach 50.
- Affordability check.Kreto applies the three safe harbors (W-2, rate of pay, federal poverty line) and flags any offer that fails.
- 1095-C review.Before filing, Kreto checks each 1095-C line against payroll data.
What Kreto monitors.
- FTE count, monthly
- ALE status
- Affordability safe harbors
- Minimum value
- 1095-C data
Illustrative example: a growing employer crosses 50.
A staffing company with 48 full-time equivalents hires seasonal workers and crosses 50 in June. Kreto would flag the crossing when it happens, so the employer can offer minimum essential coverage within the lookback period, before the IRS sends a notice.
What is live today.
Every line works in the product now.
- ACALiveEach employer's ALE status from its full-time-equivalent count.With an estimated 4980H exposure.
Do not wait for a Letter 226-J.
See each entity's ALE status. Free for 90 days, no card.