EPAYsystems.com

Tuesday, April 8th 12 p.m. CDT

Register Here

Affordable Care Act Webinar:

Achieving Compliance, Containing Costs &

What You Should Be Doing Right Now

EPAYsystems.com 2 |

Employer Mandate – Large Employers Only

o Threshold for “Large Employer” = 50 Full-time Equivalent Employees in prior year

o Full-time employees = 30 hours per week, on average

#FULL-

TIME EMPLOYEE

S

Aggregate # hours worked/

month by part-time

employees up to 120 ________ Divided by

120

#Full-time equivalent

employees

You must count all employees working for any company within the corporate family (as determined by IRS rules)

EPAYsystems.com

PENALTY

THE LESSER OF:

$2,000 x (Total No. of Full-Time Employees – 30)

$3,000 x No. of Full-Time Employees who receive a tax credit or subsidy and purchase coverage through an Exchange

3 |

Inadequate Coverage Penalty

EPAYsystems.com 4 |

Full-Time Employee

• What is a Full-Time Employee?o Those who work, on average,

30 hours per week or 130 hours per month

o Full-time status determined on a monthly basiso Measurement & Stability periods

Measurement period (look-back) could range between 3-12 months Stability period must be at least as long as the look-back period and

can be no shorter than 6 months Administrative Period up to 90 days between the two

To determine who will be eligible, notify them and enroll them

EPAYsystems.com 5 |

• May use different Measurement and Stability Periods for:

Salaried and hourly employees

Employees of different entities

Employees located in different states

Collectively bargained with different collective bargaining agreements

Measurement/Stability Periods

EPAYsystems.com 6 |

• Examples*► Part-time employees► Hourly employees with fluctuating schedules► Seasonal employees

*These are merely examples of individuals that might be considered variable hour new hires. Facts and circumstances may limit an employer’s ability to treat these employees as variable hour new hires.

• NOTE: Expected (short) length of employment can be taken into consideration, but only for 2014

What is a “Variable Hour” Employee?

EPAYsystems.com

Stability Period coverage begins April 1, 2015 (and continues through March 31, 2016)

Variable Hour New Hire – Hire Date February 15, 2014

Measurement Period ends February 14, 2015Administrative Period From February 15 – March 31

Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.

2014 2015 2016

Measurement Period #1 Stability Period #1

Measurement Period #2

Employee switches to ongoing employee measurement period effective October 1, 2014

Stability Period #2

7 |

When Must Variable Hour New Hires be Offered Coverage?

EPAYsystems.com 8 |

Special Rule: Breaks in Service

Length of Break Length of Employment

Result Upon Rehire

More than 26 weeks

N/A Treat employee as new hire (i.e., start new measurement period and disregard prior service)

Less than 26 weeks but more than 4 weeks

Shorter than break

Treat employee as new hire (i.e., start new measurement period and disregard prior service)

Less than 26 weeks but more than 4 weeks

Longer than break

Continue existing measurement period (0 hours counted during break*)ORContinue coverage for remainder of stability period

Less than 4 weeks

N/A Same as above

EPAYsystems.com

• Compare all employees average hours to ACA guidelines to determine total FTE’s

• Will give total Full Time Employees (> 30 hours)

• Will give total Part Time Employees (< 30 hours)

• Total the two to determine total FTE’s

• Could also use alerting to ensure employees not going over 30 hours per week

ACA Dashboard

EPAYsystems.com

Affordable Care Act Webinar:Achieving Compliance, Containing Costs &

What You Should Be Doing Right Now

Tuesday, April 8th 12 p.m.

CDTFeaturing Attorney

Jennifer Kraft, Seyfarth Shaw LLP

Register Now