University of Delaware
Payroll

 

Information for Departments

About ACA

Effective January 1, 2015, the Patient Protection and Affordable Care Act (ACA) requires large employers (50 or more employees) such as the University of Delaware, to offer health insurance benefits to any employee averaging 30 work hours or more per week. This requirement is often referred to as the “employer mandate” of the ACA. Although this portion of the law does not take effect until January 1, 2015, the “Measurement Period” that will be utilized to determine employee eligibility for employer-sponsored health insurance benefits begins July 1st, 2014. More details about the measurement period are provided below.

System Changes

In order to meet ACA and Federal guidelines, all variable hour employees (described below) will need to be converted to be able to clock in and out using UDTime by July 1, 2014.

Conversion Chart

Current Employee Classification As of 7/1 FLSA Status Actions you need to do Multiple Jobs (Additional Assignment) How to Pay? Hours Worked Through Paid On
Misc Wage Misc Wage Nonexempt No Change No Change UD Time 6/28-7/5 7/11 (BW)
Undergrad Student Undergrad Student Nonexempt No Change No Change UD Time 6/28-7/5 7/11 (BW)
Grad Student on Contract Grad Student on Contract Nonexempt No Change No Change JED 7/1-7/15 7/15 (SM)
Graduate Intern Graduate Intern Nonexempt No Change No Change JED 7/1-7/15 7/15 (SM)
Adjunct Faculty (Teaching Only) Adjunct Faculty Exempt No Change No Change S-Contract 7/1-7/15 7/15 (SM)
Supplemental Professional Misc Wage Nonexempt JED to change to Misc Wage, add Hourly Rate, and add Funding If they have multiple jobs, complete an additional assignment UD Time 7/1-7/5 7/11 (BW)
Graduate Student Labor Graduate Student Labor Nonexempt JED to add Hourly Rate and Funding If they have multiple jobs, complete an additional assignment UD Time 7/1-7/5 7/15 (SM)

More information can be found in the following training documents:

Training on Evaluation and Conversion of Employees
Grad Student Labor Hourly Conversion JED
Supplemental Professional Hourly Conversion JED

Full-Time Benefited Employees

Employees at UD working 30 hours or more per week in a position expected to last 6 months or more are considered benefits-eligible employees and offered a comprehensive package of health benefits.

ACA does not require that these individuals make any changes to their benefits, nor will these employees see any changes to their 2015 benefit offerings in anticipation of the employer mandate of ACA taking effect in 2015.

Employee Definitions

Variable Hour Employees

Non-benefits-eligible employees do not receive a health benefits package from the University of Delaware, and most represent a short-term population of employees who do not work 30 hours or more per week.

ACA guidelines consider these employees “variable hour” employees. At UD, variable hour employees include:

  • Miscellaneous Wage Employees
  • Undergraduate Student Employees
  • Graduate Assistants/Research Assistants/ Teaching Assistants / Graduate Student Labor
  • Adjunct Faculty
  • Supplemental Professional

To ensure compliance with ACA requirements, it is essential for departments or units to monitor the employment of and hours worked by variable hour employees.

Determining Eligibility

The ACA provides the following method to determine if a variable hour employee has reached the 30-hour per week threshold and should be offered health insurance:

For existing “variable hour” employees (active as of July 1, 2014):

  • The University of Delaware will “look back” at a 12-month Standard Measurement Period to determine whether an employee AVERAGED 30 work hours per week.
    • The Standard Measurement Period will be April 1st – March 31st each year.
      The first measurement period begins on July 1st, 2014 and ends March 31st 2015.
  • If an employee works an average of 30 hours or more per week during the measurement period, he/she must be offered employer-sponsored health care for a period of time in the future known as the Stability Period. The employee continues to receive employer-sponsored healthcare regardless of hours worked during the stability period.
    • The Standard Stability Period will be July 1st - June 30th each year.
      The first stability period begins on July 1st, 2015 and ends June 30th, 2016.
  • There is a Standard Administrative Period between the Standard Measurement and Stability Periods. This is when Human Resources will determine and notify employees who have become eligible for employer-sponsored benefits and when these eligible employees will enroll for a July 1st effective date.
    • The Standard Administrative Period will be April 1st - June 30th each year.
      The first Standard Administrative Period begins on April 1st, 2015 and ends June 30th, 2015.

For new variable hour employees (hired after July 1, 2014):

  • Each new employee will have an individual 12-month Initial Measurement Period that begins on the date of hire. The following April 1st, the new employee will be included in the Standard Measurement Period for existing employees, as described above.
  • The Initial Administrative Period is one month and starts after the Initial Measurement Period end date.
  • If employees work an average of 30 hours or more during the Initial Measurement Period, they must be offered employer-sponsored benefits for a 12 months period called the initial Stability Period which begins immediately after the Initial Administrative Period end date.

See ACA calendar for measurement periods, administrative periods, and stability periods for existing and new employees.

Important Notes:

  • If rehires have a break of service of less than 6 months, they will be considered existing “variable hour” employees.
  • If the break of employment is more than 4 weeks but less than 6 months, the university will use the average weekly hours (prior to the break in employment) as their total inputed weekly hours (up to 501 hours) for each week during that period.

ACA Views & Reports

In order to comply with ACA and help departments monitor the hours worked by variable hour employees, Payroll will be providing quarterly ACA reports. In addition, departments can monitor hours by accessing ACA views (by employee or by department).

Questions?

Revew our posted Frequently Asked Questions
Email aca-help@udel.edu