The Affordable Care Act requires applicable large employers (ALEs) to offer appropriate and affordable health coverage to their full time employees who work 30 or more hours per week (130 hours per month). Employers are also required to measure the hours worked of part time and variable hour employees to determine if they should be offered coverage as all other full time employees. There are two methods available to employers for use in measuring: Monthly Measurement Method, and the Look-Back Method.
The monthly measurement method proves difficult in application since an employee must be offered coverage in any month which they worked over 130 hours, yet the employer might not know this until the end of the month. Many employers are unaware of this fact and apply the method incorrectly, measuring one month and then making the offer in the following month. This is an incorrect application of the rules.
It was for this reason that ACA Reporting Service released our Full Service ACA Hourly Tracking Service.
Our solution to this problem is extremely simple. Clients who engage our Full Service Variable Hour Tracking as an add on to ACA reporting follow a simple process of sending us us their payroll files with the following information (below):
- Social Security #
- Payroll Period Dates
- Hours Worked