How to Average Hours over 12 Months For ACA?
If we took avg hours worked over 12 months (for purpose of full time or part time), and they worked 30/wk avg for 1st qtr, 30/wk 2nd qtr, 10/wk 3rd qtr , and then 30/wk in 4th quarter, should avg be calc’d as such
1st – 35
2nd – 30
3rd – 10
4th – 25
Total 100/4 = 25 hours / wk
Answer
An employer can use a standard initial measurement period of between 3 and 12 months to determine full-time status for the employer mandate. If average hours worked is 30 or more then the employee is full-time. If the employee works more or less moving forward, their employment status may change.
The fee is counted differently and is based on total full-time equivalent employees.
The method you used above is correct, a 6 month period would have equaled even less hours. If this is more reflective of what you expect moving forward then this makes sense.
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The rules have changed you have to work 40 hours a week to get insurance through an employer as of jan 1 2015!!!!
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The 40 hours for insurance passed in the house in January, with 12 Democrats voting in support, but it has not passed the senate. The 30 hour for insurance rule stands. Employers should always follow IRS guidelines on this. The fee can be favorable over providing coverage for some employers, but it doesn’t count as a benefit so employers who would pay the fee for those working between 30-40 hours should do so based off an understanding of the employer mandate and not off of misunderstanding.
So 30 hours a week stands as of today April 27, 2015. We will update the site if that changes.