ACA- Enhancements with PeopleSoft HCM 9.2 Image 12
For Applicable Large Employers (ALE) subject to the Play or Pay Mandate, the most important regulation of the Employer Shared Responsibilities is the 95 percent rule. If the rule is not properly applied, an employer could be subject to a penalty and stuck with the tab for covering a large percentage of its workforce health care expenses.
There are two important parts for compliance:
First is qualifying and labeling all full-time employees properly based on the full-time definition according to the Affordable Care Act. PeopleSoft 9.2 Image 12 delivers enhancements to Time & Labor. This added functionality assists in creating a new ACA Time and Labor Time Reporting Code Table so that customers can identify what Time and Labor Time Reporting Codes should be included in the averaging of ACA Service Hours.
Second is to determine and properly track the qualifying non-assessment periods of any full-time employee. With PeopleSoft 9.2 Image 12 you are now able to track the limited non-assessment period in PeopleSoft Human Resources Base Benefits.
Sounds simple enough; however, there are six different ways an employee can be considered an employee in a non-assessment period. These employees are not included when calculating the 95 percent rule.
- First Three Months After an Employer is an Applicable Large Employer for the First Time
- First Three Months of Eligibility under the Monthly Measurement Method
- First Three Calendar Months under the Look-Back Measurement Method
- Employees during the Initial Measurement Period
- Employees Transitioning to Full-Time Employees After a Change in Employment Status During the Initial Measurement Period
- Partial Calendar Months
PeopleSoft continues to provide enhancements and functionality to assist employers with compliance tracking and reporting for ACA. We encourage you to review the latest Statement to keep up to date. The updated Position Statement can be found on My Oracle Support Document ID 1080659.1. You will be prompted to enter your user id and password to access the document.
In the meantime, please be sure to contact Larry Zagata if you have questions about any of the recent changes to PeopleSoft or ANY PeopleSoft questions.
