6 Employee Identities According to the ACA

6 Employee Identities According to the ACA

When it comes to navigating the Affordable Care Act, defining your employees early on can save your business from possible penalties due to insufficient records and lack of proof of number of full time employees. Prepare yourself for the ACA by identifying the types of employees in your business.

1. Full-Time Employee
A full-time employee works on average 30 hours per week or at least 130 hours per month. As mandated by the ACA, an employer must provide affordable healthcare to 95% of its full-time and full-time equivalent employees. A full-time employee can be ongoing, new, seasonal, or variable.

2. Part-Time Employee
For an employee to be considered part-time, she must work less than 130 hours per month during the standard measurement period. A part-time employee can be new, ongoing, variable, or seasonal.

3. Ongoing Employee
An ongoing employee is an employee that has worked for his employer for at least one standard measurement period. An ongoing employee can be full-time, part time, or variable. For a deeper look, read “Safe Harbor Method for an Ongoing Employee”.

4. New Employee
If a new employee is a variable hour employee, he must be evaluated in a standard measurement period to determine if he is considered a full-time employee. A new employee becomes an ongoing employee after he has been with the employer for at least one standard measurement period. For a deeper look, explore this infographic “Navigating the ACA: Safe Harbor Method for New Employees”.

5. Variable Hour Employee
A variable hour employee can be either a full-time employee or a part-time employee. For a variable hour employee to be considered full-time, she must work on average 30 hours per week or at least 130 hours per month. For a deeper look, explore the “Navigating the ACA: Variable Hour Employees Defined” infographic.

6. Seasonal Employee/Temporary Employee
A full-time seasonal or temporary employee must be treated as any other full-time employee in terms of when affordable health care is offered, even if it is possible the employee will not be with the employer for the entire standard measurement period.

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