Denver Staffing Agency - ACA FAQs 8 of 8 – Oct. 9, 2013

  • Posted by: J. Kent Gervasini |
  • 10/22/13 |
  • 8:45 PM
  • 1694 Views
Denver Staffing Agency - ACA FAQs 8 of 8 – Oct. 9, 2013

The Affordable Care Act (ACA) imposes major new legal obligations on employers, including new excise taxes, which will increase the cost of supplying temporary and contract workers. The staffing industry is committed to compliance with the ACA, and the American Staffing Association (ASA) is actively working to help staffing firms and clients understand the rules and how they will affect staffing services. These answers to frequently asked questions are designed to help staffing professionals understand the basic ACA requirements and compliance issues.

FAQ 8. Is It Possible For Staffing Firms To Accurately Estimate Their ACA Compliance Costs?

Many ACA-Related Costs Are Still Unkown
Many factors will determine a staffing firm’s cost of complying with the ACA. Those costs, which will increase a firm’s cost of services, will vary from firm to firm based on individual company business decisions and the nature of the staffing services provided. Many ACA-related costs are still unknown.

This is a checklist of some of the factors that will affect a staffing firm’s costs that cannot now be reliably estimated:

  • How many staffing firm employees will qualify as full-time on Jan. 1, 2015, and therefore be eligible for health insurance benefits?
  • Will ACA-compliant health insurance plans for temporary employees be available in 2015? How much will they cost? (ACA insurance reform rules have greatly restricted health insurance underwriting, and staffing firms probably won’t know their health insurance plan pricing until well into 2014).
  • Assuming health insurance plans are available for temporary employees, how many employees will participate in the staffing firm’s plan?
  • What will the staffing firm have to contribute to make its health insurance plan affordable to the employee? (This could vary by employee depending upon pay rates.)
  • How many employees will be enrolled in Medicaid (which could reduce staffing firm costs)?
  • How many staffing firm employees will be eligible for ACA subsidies (which could subject the staffing firm to penalties)?

Staffing firms should discuss these issues with their clients. They should also be discussing their 2015 health insurance options with qualified insurance brokers, agents, and consultants. ASA corporate partners and other suppliers can help with those issues. Of course, staffing firms should always discuss with their own legal counsel any issues relating to how the ACA specifically applies to their business.

Source: American Staffing Association, Oct. 9, 2013

The information in the article above is intended for general education purposes only and should not be relied upon as a substitute for professional, legal, accounting, medical and/or insurance advice.

www.JKentStaffing.com

 

  • Share/Bookmark
0 Responses to "Denver Staffing Agency - ACA FAQs 8 of 8 – Oct. 9, 2013"

Share Your Thoughts

* Required