These reports are critical tools to assist with monitoring ACA benefit eligibility; however, department supervisors and managers are still in the best position to review and monitor work hours and dual employment of their employees. Therefore, previous employment including working at another System Agency or Institution may impact benefit eligibility under the ACA rules.
The duration of the break in service between the previous employment and the date of rehire will determine the impact on the current measurement period for the rehired employee. Note: An employee that was in a stability period that is rehired within that same stability period will have benefits immediately reinstated. Active employees who are in a leave status should not have the following types of leave counted against them during the measurement period. Instances where the above types of leave apply will have the number of months or weeks used for the average shortened accordingly when calculating the average.
Currently State rules and Federal rules are not in sync. System Benefit Administration will work with the State Legislator during the upcoming legislative session to try to reconcile some of the differences.
As part of the Affordable Care Act, individuals are now required to answer information regarding their health insurance coverage when filing their taxes. Key Concepts Employer Shared-Responsibility or "Pay or Play" Employer Mandate: Employers with at least 50 full-time equivalent employees considered full-time at 30 hours are required to offer affordable, minimum-value health insurance to their full-time employees, or be subject to potential tax penalties under section H if an eligible employee enrolls through the exchange and qualifies for a subsidized premium.
Initial Administrative Period following Initial Measurement Period: The full calendar month beginning after the conclusion of the initial measurement period. Initial Stability Period: The month period beginning at the conclusion of the initial administrative period following the initial measurement period, for which benefit eligibility must be extended without regard to actual hours of service.
The standard measurement for existing employees will be running in the background and the new hire will transition to the standard period. ACA Reports A series of reports to assist departments with ACA compliance and provide information on hours worked for benefit determination will be provided by Benefit Services to departments with employees being monitored for potential ACA benefit eligibility.
These individuals should continue to monitoring for potential benefit eligibility. The initial measurement period for new hires starts on date of hire if hired on the first of the month or the first of the month following date of hire and runs for 12 consecutive months. So if a business has 10 employees who each work 80 hours per month, they would have part-time hours.
Dividing by gives us 6. This can be a combination of full-time and full-time equivalent employees, with each full-time employee counting as one, and full-time equivalent employees added as described above. If the employer had 50 or more full-time equivalent employees, they must offer affordable, minimum value health insurance to all of the full-time employees but not to part-time employees who work fewer than 30 hours per week.
We do not sell insurance products, but this form will connect you with partners of healthinsurance. You may submit your information through this form, or call to speak directly with licensed enrollers who will provide advice specific to your situation.
The Look-Back Measurement Method typically works best for variable-hour workforces that have a mix of full-time and part-time employees. This is called the measurement period. This is called the administrative period. This is called the stability period. The Monthly Measurement Method is designed for organizations that have primarily full-time workforces. Bottom line, determining ACA full-time status is critical and organizations need to do it right if they want to minimize their potential penalty exposure from the IRS.
For information on ACA penalty amounts, affordability percentages, important filing deadlines, steps for responding to penalty notices, and best practices for minimizing IRS penalty risk, download the ACA Toolkit. Joanna Kim-Brunetti. Publisher Name.
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