Affordable Care Act

WH Administrators handles the complexities associated with payroll files, benefit files, and IRS filings. This allows you to do what you do best, run your business!

WH Administrators has automated the loading of payroll and benefits data for the purpose of determining your employee’s eligibility. We make the results available to your HR administrators through our easy to use application dashboards. Housing this data on our platform enables our experts to complete your 1094 and 1095 IRS filings while making the results available for your viewing.


Measurement

Variable hour employees need to have their hours tracked during the measurement period to see if they will be eligible for benefits by meeting the minimum requirements of 30 hours worked per week.


Administration and Stability

When the measurement period is complete, our robust application will calculate the average hours - taking into account all of the variables such as protective leave, rehires and more - to determine eligibility. If eligible, employees will be invited to elect benefits right from our platform and have access to all of their enrollment information through our employee enrollment application. 


Key Terms

Full-time Employee – Under the ACA, an employee working 30 or more hours a week, or averages 130 hours or more a month, is considered full-time. A new employee who is reasonably expected to work full-time (30 hours or more per week, including on-call hours) at his or her start date for a period of 90 calendar days or more is considered benefits eligible based on ACA rules. Excludes work-study assignments.

Part-time Employee – Under the ACA, an employee working less than 30 hours a week, or averages less than 130 hours or more a month, is considered part-time.

Variable Hour Employee – An employee is considered a variable hour employee if, based on the facts and circumstances at the start date, it cannot be determined the employee is reasonably expected to work on average at least 30 hours per week

Seasonal Employee –  A seasonal employee is an employee who performs labor or services on a seasonal basis. For example, retail workers employed exclusively during holiday are seasonal workers.

Measurement Period – The Measurement Period "or look-back period" is a safe harbor method to provide employers the option to use a look-back measurement period of up to 12 consecutive calendar months to determine whether variable hour employees or seasonal employees are full-time employees, without being subject to a payment under section 4980H for this period with respect to those employees.

ACA requires two categories of Measurement Periods:

1.      Standard Measurement Period for on-going employees who have completed one full Stability Period (see below).

2.      Initial Measurement Period for new employees starting the first of the month following their hire date and ends 3 months later.

Stability Period – The period of time a variable hour employee that averaged 130 hours per month during the measurement period would be treated as a full-time employee regardless of the employee’s number of hours of service during the stability period, so long as he or she remained.The stability period cannot be less than the measurement period.

ACA requires two categories of Stability Periods:

1.      Standard Stability Period for on-going employees. Our Standard Stability Period is 6 months.

2.      Initial Stability Period for new employees starting the sixth month after the start of the Initial Measurement Period and ends six months later.

Administrative Period – The administrative period includes all periods between the latest start date of a new variable-hour or seasonal employee and the date the employee is first offered coverage under the employer’s group health plan. In addition, the period between the Measurement Period and the Stability Period. This provides a period of time to evaluate eligibility and to complete the benefit enrollment process.