Monthly Measurement– Employers can select a single month to look at the hours an employee works. If the employee worked 130 hours in the previous month, then they must be offered insurance no later than the first day after the next two months from when they hit 130 hours. If they accept the offer, then the law states that the employee remains covered under the accepted insurance until they have three consecutive months of not meeting 130 hours per month.
For example: If an employee worked 130 hours in Jan, 80 in Feb, 90 in Mar and 25 in Apr, they can be eliminated from coverage May 1. However, if an employee worked 130 hours in Jan, 80 in Feb, 90 in Mar and 131 in Apr, they cannot be eliminated and their three consecutive months resets from April.
This method works well for companies that have all Full Time employees or limited Part Time employees because the data import is only for the year. Realize though that this method lacks the averaging of hours over a longer test period. Once you decide to do testing that spans more than one month you are no longer in the monthly method – you are in a lookback method and must comply with the requirements for the lookback method.
You can select the Monthly Measurement or Lookback Measurement for your Eligibility Method from the ACA Company Setup window.
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Last Review: 4/12/2016 – Revision: 1.0
ACA Compliance and ACA Law