ACA Hours Tracking

ACA Hours Tracking: What You Need To Know for the Affordable Care Act

The Employer Mandate

The Employer Mandate of the Affordable Care Act, also known as the ACA or Obamacare, goes into effect in 2015. Large employers with 100 or more full-time employees will be subject to the Employer Mandate beginning January 2015, while those employing 50-99 full-time employees will be subject to the Employer Mandate beginning January 2016. The general premise of the Employer mandate is simple: large employers must provide group health coverage that is adequate and affordable to their full-time employees or pay a penalty for failing to do so. Both the percentage of benefits the plan pays (as compared to a participant’s out of pocket cost) and the employee’s portion of the premiums must satisfy specific standards. ACA tracking is complicated and tedious. Media Services will assist your company with all facets of the ACA including employer status determination, calculating and tracking paid hours, benefits enrollment and administration… even IRS reporting.

How many Full Time and Full Time Equivalents (FTEs) do I have?

For some businesses, determining the number of full-time employees is simple enough. If the company doesn’t hire a lot of part-time, variable-hour or seasonal employees, the full-time calculation simply involves adding up the number of full-time employees over the course of the year. But for production companies and other businesses with short-term workers and higher turnover, the full-time calculation is more complicated. A full-time employee is one who averages 30 hours or more per week or 130 per month.

However, to determine the actual size of the employer, all part-time, short-term, variable hour, and seasonal employees need to be accounted for as well. Performing various calculations of these classifications of employees and the results of such calculations determines the number of full time equivalent employees. Adding the total number of full time employees and full time equivalents determines the employer size. If the total is 50 or more over a course of at least 4 months, you are a large employer and subject to the ACA Employer Mandate.

How do I track the hours of all these classifications of employees?

In order to comply with the ACA, it’s essential to have a responsive tracking system that can give you dynamic reporting on how many FTEs you employ, as well as flagging each part-time or full-time employee as he or she becomes eligible for health coverage. If you have employees that work for periods of time, then have breaks in service and return to employment with you at a later time, this tracking can prove quite complex.

Media Services ACA tracking

Because our proprietary payroll system is uniquely designed to handle employees who work project-to-project for multiple clients, we have developed a robust solution for tracking FTEs with pinpoint accuracy. Our payroll clients enjoy this ACA reporting and tracking service free of charge.

Our tracking service can be used by any production employer, whether we are processing your company’s payroll or not. For a fee, you can provide us with a simple spreadsheet export from your payroll provider or your own in-house system, and we will track everything: total number of FTEs, employee eligibility dates and premium affordability calculations based on your employee’s W-2 income.

To further reduce your workload, we offer and administer competitively priced ACA-compliant health plans for your eligible employees, and terminate coverage or provide COBRA notifications upon separation of employment.

Learn more about how we track ACA hours

To find out more about our ACA reporting capabilities and benefits offerings, please contact benefits@media-services.com.