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Examples

These examples are provided to assist you to understand how the provision works and how the payment is determined.

Example One

Example Two

Employee Full-time Status Determination

The following examples focus on the optional Step 4 - Employee Status. They discuss the determination of full-time status under the Monthly Measurement and Look-back Measurement methods.

Example Three - Monthly Measurement Method

Example Four - Look-back Measurement Method

KEY TERMS

Administrative Period

Affordable Coverage

Aggregated Group

Applicable Large Employer Member

Applicable Large Employer (ALE)

Employee Resuming Service

Full-Time Employee

Full-Time Equivalent Employee (FTE)

Hours of Service

Initial Measurement Period

Look-Back Measurement Method

Minimum Essential Coverage

Minimum Value

Monthly Measurement Method

New Employee

Ongoing Employee

Seasonal Employee

Seasonal Worker

Section 4980H(a) Applicable Payment Amount

Section 4980H(b) Applicable Payment Amount

Stability Period

Standard Measurement Period

Variable Hour Employee