ACA Employer Mandate & Workplace Benefits Flashcards
6 cards from real ACA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 ACA Employer Mandate & Workplace Benefits flashcards as text
What is the look-back measurement method used by ALEs to determine employee full-time status?
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.
Under the ACA, which employees are NOT counted when calculating an ALE's full-time equivalent workforce for the 50-employee threshold?
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.
What ACA provision requires large employers to provide a Summary of Benefits and Coverage (SBC) to plan enrollees?
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.
Which of the following is a permissible safe harbor an employer can use to demonstrate affordability of coverage under the ACA?
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.
Under ACA rules, how must an employer treat a new variable-hour employee during the initial measurement period?
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.
Which ACA form does an employer provide directly to each full-time employee to report the health coverage offered to them?
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.