Simplify ACA Reporting with Our Affordable and Accurate Solution
As part of human resources management, navigating the intricacies of the Affordable Care Act (ACA) is important to ensure compliance and avoid penalties. One aspect of ACA compliance revolves around calculating full-time status for employees and offering health coverage accordingly.
Under ACA regulations, anyone who works an average of 130 hours or more per month during the measurement period is considered a full-time employee, regardless of their prior benefits eligibility or job classification. This designation holds significant weight as each employee who calculates to be full-time must be offered health coverage for the upcoming stability period.
The importance of reviewing measurement period results cannot be overstated. By properly tracking employee work hours and identifying those meeting the full-time threshold, HR professionals ensure that the organization remains compliant with ACA regulations. Failing to offer coverage to full-time employees can result in severe tax penalties for the organization, making this process not just a matter of administrative diligence but also of financial prudence.
Companies must offer affordable health coverage providing minimum value to at least 95% of their employees who calculate to be full-time. If this 95% threshold is not met, the employer will be subject to severe tax penalties.
Offering health coverage is a proactive process. HR professionals should not wait until penalties loom overhead to take action. By reviewing measurement period results and promptly offering coverage to identified full-time employees, organizations safeguard themselves against potential penalties and foster a culture of compliance and accountability.
Calculating full-time status and offering health coverage in accordance with ACA regulations is a multifaceted endeavor that requires diligence and foresight from HR professionals. By prioritizing the review of measurement period results and ensuring coverage for all identified full-time employees, organizations mitigate legal risks and uphold their commitment to employee well-being. BAS can help navigate ACA complexities. For information about BAS’ ACA data collection and reporting services, contact your account manager or email solutions@basusa.com.
Benefit Allocation Systems (BAS) provides best-in-class, online solutions for: Employee Benefits Enrollment; COBRA; Flexible Spending Accounts (FSAs); Health Reimbursement Accounts (HRAs); Leave of Absence Premium Billing (LOA); Affordable Care Act Record Keeping, Compliance & IRS Reporting (ACA); Group Insurance Premium Billing; Property & Casualty Premium Billing; and Payroll Integration.
MyEnroll360 can Integrate with any insurance carrier for enrollment eligibility management (e.g., Blue Cross, Blue Shield, Aetna, United Health Care, Kaiser, CIGNA and many others), and integrate with any payroll system for enrollment deduction management (e.g., Workday, ADP, Paylocity, PayCor, UKG, and many others).
