Introduction

The ACA Measurement Policies section is used to define the timeframe for the Measurement, Administrative and Stability Periods. This setup is key for having the system automate measuring and offering coverage, when appropriate.

ACA Measurement Policies

Navigating to Client Management > ACA Setup Options > ACA Measurement Policies.

Click on the Add New icon.

Policy Group: Used to name the group that this policy applies to, you could have one or more than one depending on the customer's needs.

Use Monthly Measurement Period: Switch this box to "on" if they will measure on a monthly basis.

If using this option, no other information is required to be set up.

If using this option, the system can't calculate some of the code series 2 for line 16 on the 1095C form. The customer will need to refer to the "ACA Monthly Measurement Status" report to determine whether to offer benefits.

If using this option, the employer would determine at the end of each calendar month, any employee with at least 130 hours of service during the calendar month would be considered a full time employee for that month.

Priority: Use this to establish the priority order if using more than one policy.

Rehire Option: Used to define the Rule of Parity needed for this company. This is the rule that determines how a rehire, including their previous work longevity, is treated as a new hire or not. Select the appropriate option from:

13-week Standard rule no Rule of Parity

13-week Standard rule use Rule of Parity

26-week Standard rule no Rule of Parity (for educational institutions)

26-week Standard rule use Rule of Parity (for educational institutions)

Initial Measurement Period tab: Used to define the period to be measured for newly hired employees.

Start On: Add the earliest start date of the current initial measurement period.
Note: Be careful to use only the earliest date possible as you will need to add hours in the system as of this date forward for new implementations.

Following: Key in the number of days of service after which the measurement would start.

Duration (months): Select the appropriate months that will be measured from 3-12 months.

Initial Stability Period Start On: Select from:

First Day

First Day of the Month

First Day of the First Payroll Period

Following: Key in the number for the days after the Initial Measurement Period (IMP) ends that the Stability Period (period in which the employee would be covered, if elected) would start.

The timeframe from the Measurement Period ending & the Stability Period starting, is the Administrative Period.

The Stability Period Start date cannot be more than 13 and a fraction month A new hire's initial measurement period and the administrative period combined may not extend beyond the last day of the first calendar month beginning on or after the one-year anniversary of the employee's start date.

This must be set up according to the client's policy. However, a common setup may be as follows:

Click on the Save icon.

Eligibility tab: Select the appropriate eligibility rule for the selected measurement period.

It is typically suggested to only have an eligibility rule for "active" employees.

Be careful that your eligibility rule doesn't exclude those it shouldn't as all employees do need to be measured.

If using more than 1 measurement policy, be sure your eligibility rule is correctly defined so the appropriate employees are measured in the correct policy.

Move the appropriate eligibility rule from the Eligibility Rules box on the left to the Included Eligibility Rules on the right.

To see who will be eligible based on the "Included Eligibility Rule," use the Report or Export to verify.

Ongoing Measurement Periods tab: Used to define the period to be measured for employees that are not newly hired employees.

Standard Measurement Period Start Date: Key in or use the calendar to select the start date of the current measurement period.
Note: The system will display the stop date and duration in months after you have added the start date of the standard administrative period.

Standard Administrative Period Start Date: Key in or use the calendar to select the start date of the current administrative period.

The system will dislpay the stop date and duration in days after you have added the start date of the standard stability period.

The Administrative Period is the period that the employer can view reports to determine who is eligible and also offer benefits to eligible employees.

Standard Stability Period Start Date: Key in or use the calendar to select the start date of the current period stability period.

Standard Stability Period Stop Date: Key in or use the calendar to select the stop date of the current period stability period.
Note: The system will display the duration in months after you have added the start and stop date.

The measurement periods calculate with every payroll so keep this in mind when determining the measurement and administrative period based on the last payroll that will be included in the current measurement

This must be set up according to the client's policy. However, a common setup may be as shown below:

In this example, the customer wants the stability period to be in line with their normal plan year.

When building, you may find it easier to build it backwards (add in the stability period first, then the desired administrative period, and then the measurement period).

If implementing in Oct 2020, for a customer going live Jan 2021, with a plan year of 1/1-12/31 with a 12 month measurement period & allowing a 60 day administrative period.

In this example, the admin period is more than 30 days due to the timing of the last payroll that needs included in this measurement. Since the last pay period in Oct, most likely won't be processed until the middle of November.
Note: In this example, you would need to have the hours & employment category history loaded from 11/1/19 forward.

Click on the Save icon.