Rehired employees (often called “boomerang employees”) can present compliance challenges, especially under ACA guidelines. Here's how to use Greenshades to confidently manage their return and ensure accurate tracking.
Understanding the 13-Week Rule
✔ In Greenshades, a break in service is based on a gap between pay statements.
✔ If a returning employee's break exceeds 13 weeks, they can be treated as a new hire, and their ACA measurement period restarts.
📌 Example:
- Pablo is hired on 1/1/2023 and leaves on 4/1/2023
- He returns on 8/1/2023 (after 17 weeks)
- Greenshades restarts his ACA measurement period on 8/1/2023
- Greenshades applies this rule automatically once measurement groups and periods are configured.
Applying the Rule of Parity
✔ This ACA rule applies when:
- The break is between 4 and 13 weeks
- The break is longer than the employee’s original employment period
📌 Example:
- Mary works from 1/1/2023 to 2/2/2023
- She returns on 4/1/2023 (8-week break)
- Since her break is longer than her original employment, her measurement period resets under the Rule of Parity
✔ Greenshades supports the Rule of Parity with simple configuration.
Configuring ACA Compliance in Greenshades
Employers can configure these rules in Greenshades to ensure accurate ACA compliance.
- Navigate to Settings > Benefits.
- Click the Affordable Care Act tab.
- Click New Measurement Group.
- Configure the measurement group with the latest lookback period information.
- Check the "Apply Rule of Parity" box to enable this rule for rehired employees.
📌 Manage ACA with Greenshades
✔ Greenshades automatically applies the 13-Week Rule
✔ The Rule of Parity is configurable for greater flexibility
✔ Proper setup ensures ACA compliance and benefit tracking accuracy
By leveraging Greenshades’ ACA compliance tools, you can efficiently manage rehires while staying compliant with IRS regulations. Contact us to learn more.
