December 23, 2015

Benefits of Using Time & Attendance Data for ACA Compliance

A time and attendance system can assist employers with managing employee status, responding to audits and complying with other calendar-based reporting requirements including the ACA determination process which includes three periods: a measurement period, an administrative period, and a stability period.

A measurement period is an employer-designated period of time used to deter­mine if an employee is considered full-time (that is, works an average of at least 30 hours per week or 130 hours per month). There are two types of measurement periods:

  • A standard measurement period is a look-back period from three to 12 months used to assess the full-time status of current employees.
  • An initial measurement period of three to 12 months can be used to determine full-time status of new variable-hour and seasonal employees.

The administration period is an optional period employers can take to notify and enroll eligible employees for coverage. Administrative periods begin at the end of the measurement period and may last up to 90 days. However, the administrative period cannot reduce or lengthen either the measurement period or the stability period.

A stability period immediately follows the administrative period (or measurement period if an administrative period is not invoked) during which the employee is treated as a full-time or non-full-time worker according to the findings during the measurement period. The stability period is at least six consecutive months and no shorter than the duration of the measurement period.

Read more in the white paper Benefits of Using Time & Attendance Data for ACA Compliance

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