The IRS provides two ways that Applicable Large Employers (ALEs) can determine whether employees are considered “full-time” for purposes of the Affordable Care Act (ACA)’s employer shared responsibility (ESR) mandate: the monthly measurement method and the look-back measurement method. While the monthly measurement method is the default, many employers prefer to utilize the look-back measurement method to avoid the administrative burden of determining full-time status on a monthly basis. What should happen when an employer using the look-back measurement method has an full-time employee experience a change in status to part-time? The answer can vary based on factors such as whether this is a new employee or one who has completed a standard measurement period, and how the employer’s ACA eligibility policy is drafted.
Read the full McGriff Compliance Q&A
Insurance products and services offered through McGriff Insurance Services, LLC, a subsidiary of Truist Insurance Holdings, LLC, are not a deposit, not FDIC insured, not guaranteed by a bank, not insured by any federal government agency and may go down in value.
McGriff Insurance Services, LLC. CA License #0C64544