An Hour of Service is credited to an employee based on the following ACA Law criteria:
- Each hour for which an employee is paid, or entitled to payment, for the performance of duties for the employer, and
- Each hour for which an employee is paid, or entitled to payment by the employer for a period of time during which no duties are performed due to vacation, holiday, illness, incapacity (including disability), layoff, jury duty, military duty or leave of absence.
Exclusion from the definition of hour of service is provided for services performed in certain capacities, which are not counted as hours of service for purposes of the employer shared responsibility provisions:
- Volunteer employees – Hours of bona fide volunteer service for a government entity or tax-exempt organization do not count as hours of service.
Watch On-Demand: Concepts behind the Affordable Care Act’s mandate
- Students performing work-study – Hours of service do not include hours performed by students as part of the federal work study program or a substantially similar program of a state or political subdivision.
- Members of religious orders – a religious order is permitted to not count as an hour of service work performed by an individual who is subject to a vow of poverty. For this exclusion to apply, the employee must be a member of the religious order and must be performing tasks that are usually required of active members of that order.
- Compensation that is not U.S. source income – Hours of service do not include hours for which an employee receives compensation that is taxed as income from sources outside the United States (generally meaning certain work overseas).
Further explanations on tracking within ID ACA Hosted Compliance Solution can be found on the User Guide under FMLA & All Unpaid Leave, Page 53. Click Here for User Guide.
Click Here for a Knowledge Base Article to help you to track hours for special considerations.
Click Here for a Knowledge Base Article for further explanation.
Questions / Resources
If you have questions or comments please email Support@integrity-data.com.
If you would like to search for information and resources for Integrity Data products check out the following sites:
- Knowledge Base: https://www.integrity-data.com/hrp/knowledge-base/
- Videos: https://www.integrity-data.com/hrp/videos/
Last Review: 6/8/2022 – Revision: 1.1
ACA Compliance Solution
Categories: Hours of Service