Look-Back Measurement Method Guide for Employers

This guide provides detailed information on the look-back measurement method for determining full-time status for employees, specifically targeting applicable large employers (ALEs) with 50 or more full-time equivalents. It outlines the general rules that ALEs must follow to avoid penalties under §4980H, including the definition of full-time status based on hours of service. The guide explains the two measurement methods available to employers: the monthly measurement method and the look-back measurement method, emphasizing the importance of consistency in application. It describes the standard cycle for ongoing employees, which includes the standard measurement period, administrative period, and stability period, and provides examples of how these periods can be structured. Additionally, it addresses the initial cycle for new hires, detailing how coverage is offered based on their classification and the specific rules that apply to variable hour and seasonal employees. The guide concludes with information on break in service rules and their implications for employee status.