ACA ACA Employer Mandate & Workplace Benefits 2 — Questions and Answers
Question 1: What is the look-back measurement method used by ALEs to determine employee full-time status?
- A 3-month averaging window applied monthly
- A measurement period of 3–12 months used to average hours and project status forward (Correct answer)
- A weekly hour count averaged over one pay period
- A real-time tracking system updated daily
Correct answer: A measurement period of 3–12 months used to average hours and project status forward
The look-back measurement method allows ALEs to measure an employee's average hours over a standard period (3–12 months) and apply that status during a subsequent stability period.
Question 2: Under the ACA, which employees are NOT counted when calculating an ALE's full-time equivalent workforce for the 50-employee threshold?
- Seasonal employees working fewer than 120 days per year (Correct answer)
- All part-time employees regardless of hours
- Employees on FMLA leave
- Employees enrolled in a government health plan
Correct answer: Seasonal employees working fewer than 120 days per year
Seasonal employees who work fewer than 120 days in a calendar year are excluded from the ALE calculation for determining the 50 FTE threshold.
Question 3: What ACA provision requires large employers to provide a Summary of Benefits and Coverage (SBC) to plan enrollees?
- ERISA Section 102
- ACA Section 2715 (Correct answer)
- HIPAA Section 701
- COBRA Section 4980B
Correct answer: ACA Section 2715
ACA Section 2715 requires health insurers and group health plans to provide a standardized Summary of Benefits and Coverage to help consumers understand their coverage.
Question 4: Which of the following is a permissible safe harbor an employer can use to demonstrate affordability of coverage under the ACA?
- The employer's total revenue safe harbor
- The W-2 wages safe harbor (Correct answer)
- The employer size safe harbor
- The state wage index safe harbor
Correct answer: The W-2 wages safe harbor
The W-2 wages safe harbor allows employers to determine affordability by ensuring the employee's contribution does not exceed the affordability percentage of W-2 box 1 wages.
Question 5: Under ACA rules, how must an employer treat a new variable-hour employee during the initial measurement period?
- Offer coverage immediately on the hire date
- Track hours during the measurement period before determining full-time status (Correct answer)
- Classify them as part-time permanently
- Report them to the Marketplace as uninsured
Correct answer: Track hours during the measurement period before determining full-time status
Employers may use an initial measurement period for new variable-hour employees to track hours and determine full-time status before deciding whether to offer coverage.
Question 6: Which ACA form does an employer provide directly to each full-time employee to report the health coverage offered to them?
- Form 1094-C
- Form 1095-B
- Form 1095-C (Correct answer)
- Form 8962
Correct answer: Form 1095-C
Form 1095-C is provided by ALEs to each full-time employee and reports details about the health coverage offered, including months offered and employee share of premiums.
ACA ACA Employer Mandate & Workplace Benefits 2
What is the look-back measurement method used by ALEs to determine employee full-time status?