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ACA Compliance Resources

ACA Compliance Resources

FMLA (Unpaid Leave) is Needed for PT and FT Testing


My question is, Can I enter FMLA, Unpaid Leave, just for my PT employees because those are the only ones being tested for eligibility?

Not really. The reason you should use it for ALL employees is that if a full time employee decided to go part time, the employer is obligated to treat them and test them as if they were a variable hour employee for the entire latest test period completed (SMP or IMP) in order to see if they would continue to be eligible in a corresponding stability period.

If you do not use the FMLA (Unpaid Leave) for a full time employee and this scenario comes – going from full time to part time – you would not be crediting the employee with the right amount of hours.

See this KB link for further information: Click Here

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Last Review: 6/8/2022 – Revision: 1.1

Applies To:
ACA Compliance Solution

Categories:  Hours of Service

Keywords:  FMLA, Unpaid


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