Note: The ACA
Affordable Care Act covers W-2 employees, not 1099 contractors. This tab lists only those employee records that have the Miscellaneous tab > Tax Form field with a W2 value.
Note: If the Company is not an Applicable Large Employer, they are not subjected to the ACA and therefore do not need to identify or test ACA Status.
The Affordable Care Act (ACA) requires that Applicable Large Employers (ALEs) offer full-time employees the opportunity to enroll in affordable medical insurance that meets minimum essential coverage. Employers may be subjected to a fine if they do not offer insurance to a full-time employee.
In some cases, employers will not know if an employee is full-time or part-time because they may work a schedule that varies week-to-week. These employees should be identified in the ACA status record as a variable hour employee. For employees that work a variable hour schedule, the regulation allows the employer to test the employee’s ACA status by calculating the employee average hours of service during a look back period, then applying the results of the test to a stability period. When testing for variable hour employees, employers must determine a standard measurement period and a stability period. The regulations apply special rules for newly hired variable hour employees and the user should reference the ACA regulation for more information.
The ACA Status Audit feature performs three main tasks, which are explained in the associated use cases below.
- Audit your current (non-variable hour) employees.
- Audit your on-going variable hour employees.
- Audit newly hire variable hour employees.
For more on the tab and its fields, see EE ACA Status Audit.
Note: In each use case (example), you are the payroll administrator for the ACME Company, responsible for performing the steps explained here.
Click each link below for topics of example use cases: