What is the difference between weekly and monthly measurement for ACA compliance?

Weekly measurement calculates employee hours based on each calendar week, applying the 30-hour threshold weekly, while monthly measurement totals actual hours worked across a calendar month with a 130-hour threshold. Each method offers advantages depending on workforce variability and payroll systems.

How do I know if weekly or monthly measurement is best for my business?

Choosing between weekly or monthly measurement depends on your employee scheduling patterns, payroll system capabilities, and administrative resources. Weekly measurement is ideal for businesses with fluctuating hours, while monthly measurement works well for consistent schedules and aligns directly with IRS reporting requirements.

Can ACA-Track support both weekly and monthly measurement methods?

Yes. ACA-Track provides flexible configuration options that allow your business to select weekly or monthly measurement methods. The platform automates hour tracking, monitors eligibility thresholds, and integrates with payroll and HRIS systems to ensure accurate compliance.

What are the risks of choosing the wrong measurement method for ACA compliance?

Using an inappropriate measurement method can lead to inaccurate tracking of employee hours, misclassification of full-time status, and potential IRS penalties. It may also cause unnecessary offers of coverage or missed eligibility notifications, impacting compliance and costs.

How does ACA-Track simplify ACA reporting after choosing a measurement method?

ACA-Track consolidates all compliance data in one platform, automatically generates IRS forms 1094-C and 1095-C, and offers electronic filing directly with the IRS. The system’s built-in audits and alerts help identify errors early, ensuring timely and accurate reporting.

Weekly vs. Monthly Measurement Which Is Right for Your Business

Weekly vs. Monthly Measurement: Which Is Right for Your Business?

When it comes to Affordable Care Act (ACA) compliance, one of the critical decisions your company will face is how to measure employee hours to determine health coverage eligibility. Employers must decide between weekly and monthly measurement methods — a choice that impacts compliance accuracy, reporting, and even potential penalties. Understanding the pros and cons of each method will help you select the best approach tailored to your business’s unique workforce and operational needs.

In this post, we’ll explore these two measurement strategies and explain how a trusted ACA compliance solution like ACA-Track can simplify tracking, monitoring, and reporting so you can remain confident and compliant.

Understanding ACA Measurement Periods

Before we dive into weekly vs. monthly measurement, it’s helpful to recap why tracking employee hours matters. Under the ACA, Applicable Large Employers (ALEs) — generally those with 50 or more full-time or full-time equivalent employees — must offer affordable, minimum-value health coverage to full-time employees and report this information to the IRS annually.

A full-time employee is defined as someone working an average of at least 30 hours per week or 130 hours per month. To determine which employees qualify, employers use a measurement period to average hours worked. This period can be between 3 and 12 months and must be consistent for all employees within the same category.

Weekly Measurement Method

Weekly measurement calculates employee hours based on each calendar week. The 30-hour full-time threshold applies directly to each week measured.

Advantages of Weekly Measurement:

Granular and Immediate: Weekly measurement allows you to track hours closely and respond quickly to fluctuations in hours worked.
Easier to Manage for Some Work Schedules: For businesses with consistent weekly schedules, like retail or hospitality, weekly measurement aligns well with payroll and timekeeping.
Better for Hourly and Variable Workers: Employers can easily detect when variable-hour employees exceed full-time thresholds on a week-to-week basis.

Challenges of Weekly Measurement:

Potential Over- or Under-Counting: A weekly approach can cause spikes in certain weeks to trigger coverage requirements, even if the employee’s overall hours aren’t consistently full-time.
More Frequent Data Processing: Employers must compile and review weekly data continuously, which can increase administrative burden.

Monthly Measurement Method

Monthly measurement totals the actual hours worked across each calendar month. Employees averaging 130 or more hours in a month are considered full-time for that period.

Advantages of Monthly Measurement:

Smoother Hour Calculation: Monthly averages reduce fluctuations caused by irregular weekly schedules, offering a more balanced view of hours worked.
Aligned with Payroll Cycles: Many companies process payroll monthly, so monthly measurement can integrate smoothly with existing systems.
Simplifies ACA Reporting: IRS reporting focuses on monthly full-time equivalents (FTEs), making monthly measurement more directly applicable for annual filings.

Challenges of Monthly Measurement:

Less Responsive to Weekly Variations: Employers may miss sudden weekly spikes in hours, potentially affecting eligibility assessments.
More Complex Timekeeping Systems Needed: Some payroll or HR systems may require customization to report accurate monthly hours for ACA tracking.

Which Measurement Method Is Right for Your Business?

Choosing between weekly and monthly measurement depends on your workforce composition, payroll system, and administrative capacity. Here are some considerations:

Workforce Consistency: If your employees have regular, predictable schedules, monthly measurement might suffice. For businesses with fluctuating weekly hours, weekly measurement provides more precision.
Payroll and HR Systems: Ensure your payroll or HRIS can capture and report hours in the measurement interval you choose without manual intervention or errors.
Compliance Risk Management: More frequent, detailed tracking can reduce the risk of ACA penalties related to misclassification or underreporting.

How ACA-Track Can Help You Navigate Measurement and Reporting

ACA compliance can be overwhelming, especially when balancing complex measurement rules and reporting deadlines. ACA-Track offers a comprehensive ACA compliance solution that supports both weekly and monthly measurement methods tailored to your needs. Here’s how ACA-Track stands out:

Robust Hour Tracking Across Employee Types

Whether your workforce includes variable hour, part-time, full-time, or substitute employees, ACA-Track collects actual hours worked across all categories, integrating seamlessly with multiple systems — from time clocks and manual timesheets to payroll and mobile entries.

Flexible Measurement Period Configurations

With ACA-Track, you can customize measurement, administrative, and stability periods with ease. The platform lets you choose weekly or monthly measurement methods and adjust parameters as your business evolves.

Automated Eligibility Monitoring and Alerts

ACA-Track continuously monitors employee eligibility thresholds, sending advanced alerts if an employee’s hours exceed full-time thresholds. This proactive approach helps avoid compliance gaps and unexpected IRS penalties.

Accurate and Simplified ACA Reporting

The software electronically generates IRS-compliant 1094-C and 1095-C forms, and even files your data directly with the IRS via XML files. ACA-Track also offers monthly line code audits to ensure your reporting codes are accurate, helping you fix errors before filing deadlines.

Dedicated Client Success Support

ACA compliance involves many moving parts. ACA-Track provides a dedicated Client Success Advisor to guide your team through setup, ongoing tracking, and reporting — making compliance straightforward and stress-free.

The Bottom Line

Both weekly and monthly measurement methods have valid applications depending on your business’s structure and needs. However, no matter which approach you choose, having a trusted ACA compliance partner like ACA-Track ensures:

Comprehensive tracking of all employee hours
Real-time monitoring and alerts for eligibility
Hassle-free generation and electronic submission of IRS reports
Confidence in meeting ACA requirements and avoiding costly penalties

By leveraging ACA-Track’s powerful, secure, and customizable platform, your business can focus less on paperwork and more on what matters most — your people.

For more information on how to streamline your ACA compliance with weekly or monthly measurement, visit ACA-Track today.