Setting up default ACA Parameters

ACA Pay Class

Select an ACA Pay Class that is used to capture ACA Hours (BN54) at Payroll Close (PR197).

Average Weekly hours

Type the average weekly hours for an employee. The default value is 30 per IRS regulations.

Average weekly hours is used for the ACA average hours calculation, which is the basis for determining the Benefit eligibility of the employee. If the employee’s payroll hours are equal to or greater than the average hours parameter for an end-user specified Measurement Assessment (BN149), then they are considered benefit eligible and given a Benefit Status of Eligible on the employee’s ACA Measurement Assessment Dates record (BN49). If the average hours are below 30, then the Benefit Status is Not Eligible.

Average Monthly Hours

Type the average monthly hours for an employee. The default value is 130 per IRS regulations.

The Initial Assessment parameters are used as defaults for the ACA Measurement Assessment (BN149).

Initial Measurement Period Duration and Frequency

Type the number of duration units for calculating the Initial Measurement Period Date Range and select the frequency. Start Date for the initial measurement period = Employee Hire Date. A New Hire Employee is an employee with a hire date in the measurement period analysis range.

This is the period of time between three and 12 months (chosen by the employer) that will be used for determining if new Variable Hour Employees or Seasonal Employees are considered full-time employees. The Initial Measurement Period may begin on the date of hire or the first day of the calendar month following the date of hire. The duration is used to determine the Initial Measurement Period End Date based on the hire date plus duration units.

Initial Administrative Period Duration and Frequency

Type the number of duration units for calculating the Initial Administrative Period Date Range and select the frequency.

This is the period between the end of the Initial Measurement Period and the associated Initial Stability Period. The Initial Administrative Period may last up to 90 days and is envisioned to be the time during which employers determine which of its employees have satisfied the requisite 30 hours per week average in order to be eligible for coverage. This is also the period in which eligible employees are provided with information about medical plan coverage options and given an opportunity to enroll. The duration is used to determine the Initial Administrative Period based on the Initial Measurement Period End date plus duration units.

Initial Stability Period Duration and Frequency

Specify the number of duration units for calculating the Initial Stability Period and select the frequency.

This is the period of time between six and 12 months during which an employee’s status as a full-time employee is fixed based on the results from the average hours worked during the Initial Measurement Period. An Initial Stability Period must be at least as long as the Initial Standard Measurement Period but no shorter than six months. The duration is used to determine the Initial Stability Period based on the Initial Administrative Period End date plus duration units.

Hire Date

Select the Hire Date to determine if an employee is an on-going or new hire/rehire. Select the hire date to use as the starting point for the Initial Measurement Period assessment. For example, Hire Date, Adjusted Hire Date, Anniversary Date.

First of Next Month

• Select Yes if the Initial Measurement Period should start on the first of the month following the hire date.

• Select No if the Initial Measurement Period should start on the hire date.

If the hire date is on the first day of the month, then the Initial Measurement Assessment will start the same day.