Simplify ACA Reporting with Our Affordable and Accurate Solution
For HR departments, tracking hours for variable-hour employees is critical for Affordable Care Act (ACA) compliance when determining full-time status. Variable-hour employees are those whose work hours fluctuate, making it challenging to ascertain their eligibility for employer-sponsored health coverage under the ACA.
To accurately track hours, HR professionals must implement effective systems and strategies.
Here are some essential tips:
- Establish Clear Definitions: Begin by defining what constitutes "full-time" employment according to the ACA guidelines. Full-time employees are those who work, on average, at least 30 hours per week or 130 hours per month.
- Implement Timekeeping Systems: Utilize robust timekeeping systems that accurately capture and record employees' work hours. These systems should be user-friendly and accessible to both employees and HR staff.
- Regularly Monitor Hours: Consistently monitor variable-hour employees' hours worked to determine their average hours over the measurement period. The measurement period, as defined by the ACA, typically spans anywhere from three to twelve months.
- Document and Maintain Records: Keep detailed records of employees' hours worked, including any deviations or changes in schedules. Accurate documentation is essential for ACA compliance and may be required in the event of an audit.
- Communicate with Employees: Maintain open communication with variable-hour employees regarding their work schedules and hours. Inform them of any changes in policies or procedures related to time tracking and ACA compliance.
- Stay Informed on Regulations: Stay updated on ACA regulations and any changes or updates that may impact your organization's compliance efforts. Attend training sessions or seek guidance from legal experts to ensure adherence to current requirements.
By diligently tracking hours for variable-hour employees, HR departments can effectively manage ACA compliance and ensure that eligible employees receive the healthcare coverage mandated by law. Investing in robust timekeeping systems, clear communication, and ongoing education will help streamline the process and mitigate compliance risks for employers.
Benefit Allocation Systems makes it easy to determine whether a variable hour employee should be treated as full-time for ACA purposes. BAS has several options for getting hours into the BAS system for analysis. For information about BAS’ ACA data collection and reporting services, contact your account manager or 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).
