What is ACA limited non-assessment period?

A limited nonassessment period (LNP) generally refers to a period during which an applicable large employer (ALE) will not be subject to an employer shared responsibility (or pay or play) penalty under the ACA for a full-time employee, regardless of whether the employee is offered health coverage during that period.

What is 4980H A?

Section 4980H generally provides that an applicable large employer is subject to an. assessable payment if either (1) § 4980H(a) applies because the employer fails to offer. its full-time employees (and their dependents) the opportunity to enroll in minimum.

What is the initial measurement period?

An initial measurement period may be used to measure the hours of a new employee who either has a seasonal job or is not reasonably expected at hire to average 30 or more hours of service a week. Like the standard measurement period, an initial measurement period can run from three to 12 months.

What is Section 4980H safe harbor codes?

Code 2G: Section 4980H affordability federal poverty line safe harbor. Enter code 2G if the ALE Member used the section 4980H federal poverty line safe harbor to determine affordability for purposes of section 4980H(b) for this employee for any month(s).

What is Code 2D on Form 1095-C?

The code “2D” is the IRS ACA 1095-C Line 16 code for “Employee in a section 4980H(b) Limited Non-Assessment Period for the month.” This means that the employee was either in their waiting period (new full-time employee) or initial measurement period (new variable hour employee).

What is a Section 4980H B limited non assessment period?

A Limited Non-Assessment Period, according to the IRS, “generally refers to a period during which an ALE Member will not be subject to an assessable payment under section 4980H(a), and in certain cases section 4980H(b), for a full-time employee, regardless of whether that employee is offered health coverage during that …

What are ACA measurement periods?

ACA Measurement Period. While the Stability Period is the time frame that eligible employees should be offered health coverage; the Measurement Period is the time frame that is used to track an employee’s hours worked. A Measurement Period time frame can range from 3 months to 12 months.

What does measurement period mean?

The term “measurement period” indicates a time frame for the employer to look back to determine if an employee met the 30-hour requirement. The university evaluates variable-hour employees only; fully benefit-eligible employees are eligible for medical insurance by definition and therefore do not need measurement.

What is limited non assessment period for Section 4980H B?

What is the safe harbor rate for 2021?

9.83%
Form W-2 Safe Harbor: Under this safe harbor, an employer’s offer of coverage will be deemed affordable if the employer’s share of the cost for the lowest-level self-only coverage is no more than the IRS issued affordability percentage (9.78% for 2020 or 9.83% for 2021) of the employee’s wages as reported in Box 1 of …