Answer Bank Category: How to use days-worked equivalency?

Question:

We have salaried employees who are scheduled three days a week. They generally work between 10 and 12 hours per day on those three days and then are off until the next week. We do not track their hours.

In reading the final regulations for the Affordable Care Act’s employer shared responsibility provisions, we saw we could use a days-worked equivalency whereby the employee is credited with 8 hours of service each day for which he or she works regardless of how many hours they actually work.

Under this method, we would only have to credit these employees with 24 hours of service (8 hours x 3 days) per week which would put them under the 30-hour threshold for offering coverage.

Is this correct?

Answer:


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Question:

Back in February 2016, we calculated our workforce numbers for 2015 and found we just hit the 50 full-time and equivalents mark.

We thought being an Applicable Large Employer meant we just had more year-end reports. Now we’re worried we might be on the line with the IRS for what those reports will show.

We haven’t done anything to check on when we should have been offering coverage.

What penalties are we facing?

Answer:


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Question:

We pay bi-weekly and, although we can use 130 hours of service per month for determining eligibility, we heard that there is an optional weekly rule that will also allow us to determine eligibility.

How does that work?

Answer:


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Question:

We are on the look-back measurement method and have completed our standard measurement period test. Our stability period currently coincides with our plan year, but we now want to change our plan year.

What do we need to worry about in order to avoid any penalties?

Answer:


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Question:

How are hours of services credited to an employee affected by short-term disability, long-term disability and workers’ compensation?

Answer:


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Question:

We are a transportation company that provides school bus service to local school districts. We have heard conflicting information on how to handle the hours of service for our bus drivers, as well as when we can classify them as being a new hire.

Under the ACA, since we are not an educational institution, are we able to use the 13-week rule for rehire for our bus drivers, as they will be off during summer break for a little over 13 weeks. If so, we would be able to reclassify them as new hires and not have to offer them health coverage? They would never complete an initial measurement period test.

Answer:


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Question:

We are an Applicable Large Employer. We have a number of companies with their own Employer Identification Number that are commonly owned. Some employees move between companies during the year.

How do we handle them when we are looking at who we have to offer health coverage to?

Answer:


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Question:

We have a full-time employee who will be going part-time. Can we discontinue coverage immediately when they go part-time?

Answer

Question:

How long do waivers last?

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Question:

How does COBRA work when someone loses their eligibility for coverage?

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