Denver Staffing Agency - ACA 12-Month “Look-Back” Period Begins Jan. 1, 2013 - Part 4
- 12/30/12 |
- 6:22 PM
- 3097 Views
The Patient Protection and Affordable Care Act (PPACA), signed into law by President Obama on March 23, 2010, makes sweeping changes in the U.S. health care system, many of which will affect our Denver, Colorado employers and others in our nation.
2013 “Look-Back” Period Begins – All Employee Data Analyzed
Denver staffing agencies such as J. Kent Staffing are now in the process of preparing and planning for implementation of the Affordable Care Act (ACA) and will begin to analyze all employee data for the 2013 “look-back” period. For large employers (50 or more employees), the 2013 “look-back” period (12-month measurement period) will determine who is eligible to participate in the employer’s affordable health care plan, effective January 2014.
Why is the Full-Time Employee Definition & Look-Back Proposal Important?
Notice 2012-58, the official guidance clarifying the definition of full-time employee (130 hours per month,1,560 hours annually) under ACA, and “look-back proposal” was released by the Obama administration on Friday, August 31, 2012. The importance of the "look-back" proposal was discussed in our blog published on September 23, 2012, The Affordable Care Act “Look-Back” Defined. The Obama administration’s issued guidance (Notice 2012-58) is designed to assist employers (50 or more employees) who fall under the Patient and Protection Affordable Care Act effective January 1, 2014, to identify their full-time employees for purposes of either:
- Paying penalties (PAY), or
- Offering affordable health coverage (PLAY)
J. Kent Begins 12-Month Measurement or Stability Period Safe Harbor (“Look-Back”)
Therefore, beginning January 2013, J. Kent Staffing will commence its 12-month measurement period (“look-back”) for both “ongoing” and new “variable hour employees” to determine whether they are full-time employees as defined by the ACA. The 2013 “look-back” or 12-month measurement period will determine who will be eligible to participate in J. Kent’s health care plan, effective 2014.
Complex Implementation with Significant Financial Impacts for All
J. Kent Staffing has been tracking this legislation for more than 14 months during which time our Denver Staffing Managers have participated in many employment law courses on this subject matter through the American Staffing Association. We are acutely aware of the increased costs on business operations as the country embarks upon a complex and unproven implementation. Additional staff will be needed to analyze and report employee data, new systems will need to be designed and implemented, and increased health care premium costs will significantly affect the profitable operations of all Denver employers to include Denver staffing agencies.
ASA Successfully Negotiates 12-Month "Look-Back" Period
The 12-month “look-back” period will benefit many industries and sectors to include construction, hospitality, retail, health care, the staffing industry, etc.
It is important to point out that the American Staffing Association (ASA) and its allies have been advocating the 12-month “look-back” measurement or stability period safe harbor for more than one year prior to the release of the official guidance on August 31, 2012. The ASA’s legal staff took the lead on the 12-month “look-back” period negotiations with the Obama administration because of the significant impact on the staffing industry, and receives a great deal of credit for its successful outcome that benefits many.
Would You Like More Information about Obamacare—
The information in the article above is intended for general education purposes only and should not be relied upon as a substitute for professional, legal, and/or accounting advice.