This three-part series focus on what employers should be doing now for 2018 ACA compliance and reporting, including tracking employees.
Although the individual insurance coverage mandate of the Affordable Care Act (ACA) was rescinded in 2017, the Shared Responsibility provision for Applicable Large Employers (ALEs) is still in effect.
ALEs still must offer health insurance and report full-time worker insurance coverage. Key to ensuring employer compliance with the ACA is knowing when a part-time or variable hour employee is eligible for an offer of insurance coverage.
The only way to determine if a part-time employee has worked an average of 30 hours or more is to track and document the employees’ actual hours worked. Tracking part-time and variable hour employees gives the employer important information when determining whether the employee is eligible for an offer of insurance coverage under ACA regulations.
Marketplace Coverage & Part-time Employees
If a part-time worker seeks coverage for medical insurance from the Marketplace when the employer should have offered insurance coverage, the employer is then at risk for penalties for failing to comply with the ACA.
The only way to document or prove an employee worked LESS than 30 hours average per week is to track and document the employee’s actual hours worked.
If there is no documentation of hours worked (OR a valid waiver on file for that employee), then the employee has the advantage, since under ACA and employment laws, it is the employer’s responsibility to maintain documentation and monitor all employees’ hours worked.
