The document outlines a webinar on the Affordable Care Act focusing on compliance and cost containment for large employers. It details definitions of full-time and variable hour employees and explains the penalties associated with not meeting ACA requirements. Important timelines and measurement periods for coverage eligibility are also discussed.

1. EPAYsystems.com
Tuesday, April 8th 12 p.m. CDT
Register Here
Affordable Care Act Webinar:
Achieving Compliance, Containing Costs &
What You Should Be Doing Right Now

2. EPAYsystems.com 2 |
Employer Mandate – Large Employers Only
o Threshold for “Large Employer” = 50 Full-time Equivalent
Employees in prior year
o Full-time employees = 30 hours per week, on average
#FULL-TIME
EMPLOYEES
Aggregate #
hours worked/
month by part-
time employees
up to 120
________
Divided by 120
#Full-time
equivalent
employees
You must count all employees working for any company within
the corporate family (as determined by IRS rules)

3. EPAYsystems.com
PENALTY
THE LESSER OF:
$2,000 x (Total No. of Full-Time
Employees – 30)
$3,000 x No. of Full-Time Employees
who receive a tax credit or subsidy
and purchase coverage through an
Exchange
3 |
Inadequate Coverage Penalty

4. EPAYsystems.com 4 |
Full-Time Employee
• What is a Full-Time Employee?
o Those who work, on average,
 30 hours per week or
 130 hours per month
o Full-time status determined on a monthly basis
o Measurement & Stability periods
 Measurement period (look-back) could range between 3-12 months
 Stability period must be at least as long as the look-back period and
can be no shorter than 6 months
 Administrative Period up to 90 days between the two
 To determine who will be eligible, notify them and enroll them

5. EPAYsystems.com 5 |
• May use different Measurement and Stability Periods for:
 Salaried and hourly employees
 Employees of different entities
 Employees located in different states
 Collectively bargained with different collective bargaining
agreements
Measurement/Stability Periods

6. EPAYsystems.com 6 |
• Examples*
► Part-time employees
► Hourly employees with fluctuating schedules
► Seasonal employees
*These are merely examples of individuals that might be
considered variable hour new hires. Facts and circumstances
may limit an employer’s ability to treat these employees as
variable hour new hires.
• NOTE: Expected (short) length of employment can be taken
into consideration, but only for 2014
What is a “Variable Hour” Employee?

7. EPAYsystems.com
Stability Period coverage
begins April 1, 2015 (and
continues through March
31, 2016)
Variable Hour
New Hire – Hire
Date February
15, 2014
Measurement Period
ends February 14, 2015
Administrative Period
From February 15 –
March 31
Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.
2014 2015 2016
Measurement Period #1 Stability Period #1
Measurement Period #2
Employee switches to ongoing
employee measurement period
effective October 1, 2014
Stability Period #2
7 |
When Must Variable Hour New Hires be
Offered Coverage?

8. EPAYsystems.com 8 |
Special Rule: Breaks in Service
Length of
Break
Length of
Employment
Result Upon Rehire
More than 26
weeks
N/A Treat employee as new hire (i.e.,
start new measurement period and
disregard prior service)
Less than 26
weeks but more
than 4 weeks
Shorter than
break
Treat employee as new hire (i.e.,
start new measurement period and
disregard prior service)
Less than 26
weeks but more
than 4 weeks
Longer than
break
Continue existing measurement
period (0 hours counted during
break*)
OR
Continue coverage for remainder of
stability period
Less than 4
weeks
N/A Same as above

9. EPAYsystems.com
• Compare all employees average hours to ACA guidelines
to determine total FTE’s
• Will give total Full Time Employees (> 30 hours)
• Will give total Part Time Employees (< 30 hours)
• Total the two to determine total FTE’s
• Could also use alerting to ensure employees not going
over 30 hours per week
ACA Dashboard

10. EPAYsystems.com
Affordable Care Act Webinar:
Achieving Compliance, Containing Costs &
What You Should Be Doing Right Now
Tuesday, April 8th
12 p.m. CDT
Featuring Attorney
Jennifer Kraft, Seyfarth
Shaw LLP
Register Now