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Policies must be configured and maintained in order for the ACA tool to perform appropriate calculations. This is where measurement periods and calculation rules are defined. A measurement policy must be added in this section, even if the employer will only be using EaseCentral’s ACA tool for 1094-C and 1095-C IRS reporting purposes only.
If required, more than one policy can be set up for different groups of employees.
Note: According to the IRS, an employer may use measurement and stability periods that differ in either length or in their starting and ending dates for the following categories of employees:
- Salaried and hourly employees
- Employees employed in different states
- Collectively bargained and non-collectively bargained employees
- Each group of collectively bargained employees covered by a separate bargaining agreement
The General policy can be applied solely if the same measurement rules apply to all employees.
The employer should determine whether the Look Back or Monthly measurements can be set.
If Monthly measurements are the chosen method, simply choose the Monthly MEASUREMENT METHOD and assign any Eligibilities if needed.
For those employers using a Look-Back MEASUREMENT METHOD, periods will also need to be set for newly hired employees, each who would be measured in the New Employee (Initial) Period. All other ongoing employees would be measured in the Ongoing Employee (Standard) Period.
Because employers that adopt the look back measurement method must follow a complicated set of rules, we’ve built these rules into the system so they’re handled automatically. For example:
- Initial measurement periods can either be set to begin on the hire date or the first of the month following the hire date
- Both initial and ongoing stability periods cannot be shorter than the measurement period
- Ongoing administrative periods cannot be longer than 90 days
- Initial admin periods cannot extend past the end of the 13th month and a fraction of a month after the hire date
After the policies are built, the Dates section at the bottom of the screen will display all of the key dates that apply based on the Ongoing Employee (Standard) Periods rule that were selected above. Please verify that these dates align with company’s expectations for their measurement choices.
Note: Measurement periods should be determined prior to configuring the ACA module in EaseCentral. EaseCentral does not provide guidance or advice about determining measurement periods for ACA compliance and this guide does not constitute legal consultation in any form.
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