ACA ACA Employer Mandate & Workplace Benefits 2

Question 1

What is the look-back measurement method used by ALEs to determine employee full-time status?

Accepted Answer

A measurement period of 3–12 months used to average hours and project status forward

Answer

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?

Accepted Answer

Seasonal employees working fewer than 120 days per year

Answer

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?

Accepted Answer

ACA Section 2715

Answer

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?

Accepted Answer

The W-2 wages safe harbor

Answer

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?

Accepted Answer

Track hours during the measurement period before determining full-time status

Answer

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.

(ACA) Affordable Care Act Certified Practice Test

(ACA) Affordable Care Act Certified Practice Test

ACA ACA Employer Mandate & Workplace Benefits 2