Details for System Estimated: Section 4980H Full-Time Employee Count for ALE Member Field on the Employer 1094-C Screen in the Affordable Care Act (ACA) C Forms Option

To assist in determining the values to report as the Section 4980H Full-Time Employee Count for ALE Member for each month in column (b) of Part III on the 1094-C form, the system is doing the calculations described below and displaying the results in the System Estimated: Section 4980H Full-Time Employee Count for ALE Member field on the Employer 1094-C tab of the Affordable Care Act (ACA) C Forms option.  As per the IRS instructions, the number of full-time employees are counted for each month (as based on the measurement period(s) prior to the current calendar year's stability period(s)), excluding those in a limited non-assessment period; for more information, refer to the IRS instructions at:  https://www.irs.gov/pub/irs-pdf/i109495c.pdf.

Note:  The calculations can only be completed by the system if the Affordable Care Act (ACA) Hours Tracking option has been implemented.  The System Estimated: Section 4980H Full-Time Employee Count for ALE Member field will be blank if the Affordable Care Act (ACA) Hours Tracking option has not been implemented, and the values must be figured manually.

Tip:  To view the full-time employees counted in each month by the system, do the following:  1) click the Generate/View System Estimated Details button located above the Part III: ALE Member Information - Monthly List; 2) when the Generate/View System Estimated Details screen appears, click the Execute button to generate (or regenerate) the details (if the details were previously generated, the date they were last compiled appears in the Date Last Generated field; to view the details for that last date they were generated, do not click the Execute button and instead proceed to printing the report as noted in the next step); 3) from the Reports menu on the Generate/View System Estimated Details screen, generate the System Generated: Full Time Employee Count for ALE Member Report, selecting the current year for the Calendar Year parameter and True for the Included in Month parameter (these parameters will be completed by default); and 4) click the Cancel button to close the Generate/View System Estimated Details screen.

For Ongoing Employees (Included in Standard Measurement Period):

Employees determined to be full time at the end of a measurement period (as based on a total hours per week average of 30 or more, or those flagged as Report as Full Time) are included in the count of full-time employees for every month of the following stability period.  For example, employees determined to be full time at the end of the measurement period on 5/31/2018 (using Measurement Start and End Dates of 6/1/2017 to 5/31/2018), are included in the count of full-time employees from 7/1/2018 through 6/30/2019 (which are the Stability Start and End Dates for this example); and those determined to be full time at the end of the next measurement period on 5/31/2019, are included in the count of full-time employees for the next stability period from 7/1/2019 through 6/30/2020.  Therefore, a calendar year may utilize the counts from multiple measurement/stability periods when determining the count of full-time employees each month (as in this example for 2019, January through June use the count from the measurement period ending 5/31/2018, and July through December use the count from the measurement period ending 5/31/2019).

If a full-time employee has a Termination Date in the calendar year being reported, the employee is included in the count of full-time employees in the month in which the termination took place, and then excluded from the count of full-time employees in the months after the termination.

For Other Employees (Not Included in Standard Measurement Period):  

For those employees who were not included in an applicable measurement period when figuring the count of full-time employees, and were not part of a limited non-assessment period, may need to be added to the count of full-time employees.  The scenarios for this are:

• New full-time employees who are not in a waiting period for benefits (have an Initial Benefit Status of Accepted or Declined and a Hire/Rehire Date that is the same as the Initial Benefit Eligibility Date) are added to the count of full-time employees in the months after their Hire/Rehire Date if they had 130 or more hours of service in the month, or if flagged as Report as Full Time.  The new full-time employees are also included in the month in which they were hired only if the Hire/Rehire Date is the first day of month.  For example, if a new full-time employee has a Hire/Rehire Date of 4/15/2019, an Initial Benefit Status of Accepted (or Declined), and an Initial Benefit Eligibility Date of 4/15/2019, the employee is included in the count of full-time employees starting as of May 2019; however, if the employee has a Hire/Rehire Date and an Initial Benefit Eligibility Date of 4/1/2019 instead, the employee is included as of April 2019.
• New full-time employees who complete their waiting period for benefits (have an Initial Benefit Status of Accepted or Declined and a Hire/Rehire Date that is different from the Initial Benefit Eligibility Date) are added to the count of full-time employees in the months after their Initial Benefit Eligibility Date if they had 130 or more hours of service in the month, or if flagged as Report as Full Time.  The new full-time employees are also included in the month in which they were eligible for benefits if the Initial Benefit Eligibility Date is the first day of month.  For example, if a new full-time employee has a Hire/Rehire Date of 4/15/2019, an Initial Benefit Status of Accepted (or Declined), and an Initial Benefit Eligibility Date of 7/15/2019, the employee is included in the count of full-time employees starting as of August 2019; however, if the employee has an Initial Benefit Eligibility Date of 7/1/2019 instead, the employee is included as of July 2019.
• New variable employees (have an Initial Benefit Status of Ineligible or blank) who complete their initial measurement period and are determined to be full time (as based on a total hours per week average of 30 or more) are added to the count of full-time employees starting in the first month of their Initial Stability Period.  For example, if a new variable employee has a Hire/Rehire Date of 8/21/2018, an Initial Benefit Status of Ineligible (or blank), Initial Measurement Period Start and End Dates of 9/1/2018 to 8/31/2019, and Initial Stability Period Start and End Dates of 10/1/2019 to 9/30/2020, the employee is included in the count of full-time employees starting as of October 2019.
• Employees who move from part time to full time while still in their initial measurement period (have the Initial Benefit Status updated to Accepted or Declined and an Initial Benefit Eligibility Date entered) are added to the count of full-time employees in the months after their Initial Benefit Eligibility Date if they had 130 or more hours of service in the month, or if flagged as Report as Full Time.  The employees are also included in the month in which they were eligible for benefits only if the Initial Benefit Eligibility Date is the first day of month.  For example, if an employee has a Hire/Rehire Date of 8/21/2019 with an Initial Benefit Status of Ineligible (or blank) moves to a full-time position on 10/22/2019 (so Initial Benefit Status changed to Accepted or Declined and an Initial Benefit Eligibility Date of 10/22/2019 entered), the employee is included in the count of full-time employees starting as of November 2019; however, if the employee moved to a full-time position on 10/1/2019 instead and has an Initial Benefit Eligibility Date of 10/1/2019, the employee is included as of October 2019.

Transitional Year (Applicable for Calendar Year 2015 Only):

If the First Stability Start Date (as defined on the Report Options screen in the Affordable Care Act (ACA) Hours Tracking option) starts in 2015, which is the same calendar year as the first year the forms were reported, the total count of full-time employees at the end of the first measurement period were used each month until the First Stability Start Date began, as stipulated within the IRS instructions.  For example, if the First Stability Start Date was 7/1/2015 and the Measurement Start and End Dates were 6/1/2014 to 5/31/2015, the total of full-time employees determined at 5/31/2015 were used for the transitional period of January 2015 through June 2015 as well.  Ongoing, full-time employees who terminated prior to the First Stability Start Date were subtracted from the applicable months in the transitional period (refer to the second paragraph under the "For Ongoing Employees (Included in Standard Measurement Period)" section above)), and the new full-time employees with an Initial Benefit Status of Accepted or Declined and have an Initial Benefit Eligibility Date prior to the First Stability Start Date were added to the applicable months in the transitional period (refer to the first and second bullets under the "For Other Employees (Not Included in Standard Measurement Period)" section above).