The (not so) Simple methods to test for FTEs...

Under the Affordable Care Act – (Part One)

It seems a majority of organizations are safely under or over the minimum FTE requirements for complying with the ACA.  This blog is not comprehensive, but will give you a few guidelines to untangle some of the regulation.

One of the most important definitions to be concerned about is the “stability” period. In short, the “Stability” period was created as an alternative to offer some flexibility when counting full time employees, especially for those with erratic employee counts. (i.e. staffing firms)

The other side of the “stability” period is the “measurement” period. It is here that employers must pick their poison.

The measurement period may be between three months and the most recent year. If this were the only criterion for measurement, it would be simple math to see what period was most advantageous for the company. However, it’s not that simple. Once you have elected what “measurement” period to use, it will be used for future counting criterion. Here is how the “measurement” period affects your future counts.

1. For employees that you determined “Full Time” during your “measurement” period, their “stability” period for future counts must be six months or the number of months in your “measurement” period, whichever is greater. 
2. The stability period for non “Full Time” employees must be equal to or greater than your measurement period.

The significance in “choosing” your “measurement” period on the front end is the requirement that those employees must also be included in subsequent periods if they fall within the “stability” period. Although this is a very abbreviated discussion of the “Stability” and “Measurement” period, I will provide some examples in upcoming blogs. 

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