The Affordable Care Act (ACA) requires applicable large employers (ALEs) to offer affordable, minimum value health coverage to their full-time employees or possibly pay a penalty. This employer mandate is also known as the “employer shared responsibility” or “pay or play” rules.
ALEs can use one of two methods to determine whether employees are full time under the employer shared responsibility rules:
- The monthly measurement method determines full-time status for each calendar month based on the employee’s hours of service in that month.
- The look-back measurement method determines full-time status for a longer period of time based on average hours of service during a prior period.
Contact your Cowden representative for more information on this or other compliance issues.