Page 8 - AASBO EDGE Back to School 2020.indd

FINANCE

BY JESSICA FRIER
COVID-19 + Affordable Care Act

Jessica Frier

Legislation, workforce adjustments and benefits For employers choosing to measure employees
changes prompted by the rise of COVID-19 monthly, COVID-19 creates an administrative
increase the complexity of administering the Patient nightmare. Under ACA rules, each month that an
Protection and Affordable Care Act and accurately employee works at least 130 hours, that employee
reporting to the Internal Revenue Service. is considered full-time, and, unless an exception
applies, must be offered affordable coverage to avoid
Workforce Changes Matter penalty risk. With hours fluctuating dramatically,
and employees moving in and out of full-time status
Tracking hours to identify employee status under
the ACA was difficult pre-pandemic. Understanding on a month-to-month basis, employers may find it
how to track employee hours for ACA purposes difficult to respond to ACA status changes in real
during the COVID-19 pandemic is even harder. To time, creating compliance risk.
do this correctly, employers must understand the
way the law applies to:

• Reductions in hours
• Paid time off
• Unpaid leaves of absence

• FMLA, USERRA, and jury duty

• Families First Coronavirus Response Act leaves
• Furloughs
• Layoffs

• Terminations

• Returning employees to work after a break in service
• Rehiring a terminated employee

Measurement Methods Matter

For employers using the look-back measurement Benefits Changes Matter
method, hours measured during the 2020 COVID-19
pandemic will have lasting effects well beyond 2020, The COVID-19 pandemic is forcing employers
because the hours employees work now are what to make tough choices, including dropping health
determines their full- or part-time status for ACA insurance coverage, requiring employees to pay
purposes during your organization’s next stability more toward the cost of coverage, and moving
period. Employees already in a full-time stability employees into positions which are no longer
period will retain their status as full-time until the eligible for benefits. These personnel moves could
current stability period ends. This means employers prove costly under the ACA. In particular, employers
furloughing or otherwise placing employees on should examine whether shifting responsibility for
leave may have a continuing obligation to offer (and premium amounts to employees will make their
pay for) coverage in order to avoid ACA penalties. plans unaffordable under the ACA. See below for

|
8 THE EDGE BACK TO SCHOOL 2020