Knowingly track ACA eligibility of newly hired employees in Integrity Data's ACA Compliance Solution
Determining ACA eligibility for new part time employees is complicated. It can be time consuming for employers. Hi, this is Dan Doolin with Integrity Data.
In this video, we'll show you how Integrity Data's ACA Compliance and Reporting solution is helping other employers quickly determine eligibility for newer, part time employees as well as forecasting eligibility for newer part time employees.
Let's begin by looking at the set up of the initial measurement period within the ACA Compliance and Reporting system. When we look at the initial measurement period, we have a couple of options. We can use the hire date or we can use the first day of the next month as the measurement point.
From there, we're setting up a 12 month initial measurement period, a 1 month administrative period and a 12 month stability period. This means that we're going to measure new, part time employees for 12 months and determine their average hours of service over those 12 months.
If they are determined to be eligible, we will offer them coverage for 12 months in the stability period. The system will use historical payroll data to measure the eligibility. And to take a look at that, we can go up to alerts and reports, ACA reports, and start to look at our eligibility reports.
We're going to choose our Initial Measurement Period Analysis report. We will enter the end of the current month. We have the option to create the report as a PDF report or an Excel report. I'm going to choose an Excel report. As the report gets created, we can then click on it and open the report.
As the report opens, we can see all of our part time employees who are currently in an initial measurement period. First and foremost, we can see the employees whose initial measurement period has expired, as indicated by the red "expired" status in the right side of the report.
What's important here is that we can see we need to offer coverage to two of these new, part time employees that have been with us for 12 months. Lacey and Tracey are both Eligible because their average hours of service per month exceeds 130 hours through their initial measurement period.
Other employees also have an initial measurement period expiring this month, but they are determined to be Non-Eligible because their average hours of service is less than 130. Other employees have an initial measurement period that will expire in the future, but for now we can see the forecast of their eligibility.
Alex is currently determined to be Non-Eligible based on his current average hours of service in his seven months of employment so far. At 12 months, we will determine whether or not we need to offer coverage to Alex.
The initial measurement period analysis report gives us the ability to quickly determine eligibility for employees this month as well as forecast that eligibility out into the future months.
The initial measurement period analysis report is helping employers stay compliant throughout the year by indicating which employees need to be offered coverage. This is very important to your ACA compliance effort.