What is an initial measurement period?

Initial Measurement Period and Associated Stability Period The employer measures the hours of service completed by the new employee during the initial measurement period and determines whether the employee completed an average of 30 hours of service per week or more during this period.

What is the measurement period?

Measurement period is a one year period that a variable hour employee’s weekly average hours are measured. Both the standard and initial measurement periods are on a 12-month “look back” measurement method to determine the weekly average hours for variable hour employees.

What is a 6 month look back period?

A stability period, is a designated period of not less than six months (and not less than the corresponding measurement period) during which the employer must offer coverage to all individuals identified as full-time employees during the measurement period, regardless of hours worked during the stability period.

What is ACA standard measurement period?

ACA Measurement Period. While the Stability Period is the time frame that eligible employees should be offered health coverage; the Measurement Period is the time frame that is used to track an employee’s hours worked. A Measurement Period time frame can range from 3 months to 12 months.

What is the monthly measurement method?

Under the monthly measurement method, an ALE determines each employee’s status as a full-time employee by counting the employee’s hours of service for each calendar month. An employee will generally have to be treated as full-time for any month in which he or she averages at least 30 hours of service per week.

How does the monthly measurement period work?

Using the Monthly Measurement Method, an employee’s hours of service are captured and recorded at face value. Each month, the hours are averaged and the status of employment is recorded. If the employee totals 130 or more hours of service in a single month, they are considered to be a full-time employee under the ACA.

What is the look back measurement period?

The measurement period is the period for which the employer “looks back” to historical hours of service. The look-back measurement period can be anywhere between 6 and 12 months long.

What is a lookback period?

The lookback period is the five-year period before the excess benefit transaction occurred. The lookback period is used to determine whether an organization is an applicable tax-exempt organization.

What is standard stability period?

The stability period is a period of 12 months following the completion of the standard or initial measurement period and the administrative period.

Is 30 hrs a week full-time?

Definition of Full-Time Employee For purposes of the employer shared responsibility provisions, a full-time employee is, for a calendar month, an employee employed on average at least 30 hours of service per week, or 130 hours of service per month.

How many hours is overtime?

The Fair Labor Standards Act (FLSA) states that any work over 40 hours in a 168 hour period is counted as overtime, since the average American work week is 40 hours – that’s eight hours per day for five days a week.

Is 32 hours considered full-time?

Full-time employees. Full-time employees usually work an average of 38 hours each week. They’re usually employed on a permanent basis or on a fixed term contract.