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Initial Measurement Period

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Configuration > ACA Setup > Initial Measurement Period

Initial measurement periods apply to employees hired after the start date of the current standard
measurement period and have a status record as Use Measurement Method.
A new employee is defined as an employee who has not been employed at least one standard
measurement period.

It’s important to note that the initial measurement period and the standard measurement period are
different:

  • The standard measurement period applies to all employees within a given time range.
  • The initial measurement period applies to an individual employee based on their start date and
    “Use Measurement Method” employment status

An initial measurement period’s start and end dates are based on an employee’s hire date and whether
tracking starts on the hire date or the first day of the following month after hire date.

There are no predefined start and end dates. The initial measurement period is variable as it changes
depending on an employee’s hire date.

Although an employer is allowed an administrative period of up to 90 days, there is one exception
that needs to be considered:
The Initial Measurement period and Administrative Period combined cannot exceed 13 months, but the
administrative period following a standard measurement period may last up to 90 days.

Start of Measurement Period
You can elect to have the initial measurement period start as of the hire date or the first day of the
next month after hire date. It is common practice to choose the latter – Using First Day of Next Month

Initial Measurement Period – Months
Input the number of months in the initial measurement period.

Administrative Period – Months
Input the number of months for the administrative period.

Stability Period- Months
Input the number of months for the stability period for new hires.

The initial measurement period, as selected by the employer, must be between 3 and 12 months, and may begin
on the employee’s start date or the first day of the next month.

The employer measures the number of hours completed by the new employee during the initial measurement period
and determines whether the employee completed an average of 30 hours per week.

If the newly hired employee is determined to be a full-time employee during the initial measurement period, the
employer must treat the employee as a full-time employee during the subsequent stability period, which must be the
same length as the stability period for ongoing employees.

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