Q. At the end of the year, many employees take long vacations. Do we stop counting their hours for ACA purposes when they are on vacation? If that’s the case, many people will fall below 130 working hours in the month.
A. Under the Affordable Care Act, an hour of service is defined as each hour for which an employee is paid, or entitled to payment, for the performance of duties for the employer; and each hour for which an employee is paid, or entitled to payment, by the employer for a period of time during which no duties are performed due to vacation, holiday, illness, incapacity (including disability), layoff, jury duty, military duty, or leave of absence. So, PTO hours should be counted in determining if the employee “works” 130 hours in a month for full-time status.