For an employee to be part of a standard measurement period test, they must have been employed the entire standard measurement period. They had to be employed as of the start date of the measurement period and remained employed as of the end date of the measurement period. Any employee who was employed at the start of the standard measurement period but was not employed at the end of the standard measurement period will not be counted.
New employees, who started after the start of the Standard Measurement Period, will be subject to their own individual Initial Measurement Period to determine if they qualify as a full-time employee under the ACA requirement of 130 hours per month.
An employer determines each on-going employee’s full-time status by looking back at the “standard measurement period” This is a defined time period between 3 and 12 consecutive calendar months, as chosen by the employer. The employer has the flexibility to determine the months in which the standard measurement period starts and ends, provided that the determination must be made on a uniform and consistent basis for all employees in the same category.
If the employer determines that an employee averaged at least 30 hours per week during the standard measurement period, then the employer treats the employee as Full-time during a subsequent “stability period,” regardless of the employee’s number of hours of service during the stability period, so long as he or she remains employed. The stability period must be a period of at least six consecutive calendar months that is no shorter in duration than the standard measurement period used by the employer and that begins after the standard measurement period.
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Last Review: 5/17/2017 – Revision: 2.0
Applies To: ACA Reporting Requirements, ACA Compliance solution
Categories: Eligibility Reporting
Keywords: Standard Measurement