Temporary Staffing and the Affordable Care Act (ACA)
If you are a business owner, or a person looking to become one, you should be aware of the Affordable Care Act. It has many requirements that you should keep in mind. Among them are the excise tax, the employer tax, and the part-time and seasonal worker provisions.
Employer excise tax
The Affordable Care Act (ACA) includes an excise tax on employer-sponsored health care plans. This tax is intended to encourage employers to offer less expensive health coverage options. In exchange, higher income workers receive greater benefits.
A survey by the Kaiser Family Foundation and HRET showed that premiums are disproportionately higher at firms with high-income employees. This exacerbates the challenges of low- and middle-income workers. They are more likely to report that they are uninsured or experience financial problems due to medical bills.
Some economists argue that this creates an imbalance between higher-income and lower-income workers. Higher-income workers have a greater ability to pay for higher out-of-pocket costs. Meanwhile, low-income workers are more likely to have deductibles that could use five percent or more of their income.
Since the ACA, more employers are monitoring their HAS plans to make sure they’re in compliance. Employers with plans that aren’t compliant with the ACA’s market reforms are also subject to the excise tax.
ACA’s health care reforms also include a new requirement that employers offer qualified health care coverage to a certain percentage of employees. In addition, the ACA’s excise tax is imposed on health plans that cost more than $10,200 per employee, per year.
Economists who helped design the ACA believe this will slow rising health care costs. However, the ACA’s excise taxes are creating new challenges for employers. If employers have high-cost health plans, they’re more likely to pass them on to other employees with similar premiums. These changes are threatening the availability of plans for lower-wage employees.
Counties must assess their potential excise tax liability as soon as possible. While this will likely affect county budgets, they must develop a strategic plan for 2018.
ACA’s excise tax has two primary prongs. First, the tax is applied uniformly to all workers with high-cost health plans. Second, the threshold for excise taxes is set by inflation. Consequently, the threshold amounts haven’t kept up with the growth of health care costs.
ACA’s excise tax will also reduce the value of employer-based health care plans. While employers hope to increase wages, reducing the value of benefits will limit the amount of taxable compensation that their workers can receive.
When deciding whether or not to offer health benefits to part-time employees, there are a number of considerations. You may want to consider offering a supplemental plan to meet your employee’s needs or provide a more affordable option. In addition, you might be interested in providing paid sick days.
There are numerous federal and state laws that govern part-time work. Understanding these laws can help you make informed decisions about your business’s employee health care plans.
The Affordable Care Act (ACA) requires employers to offer affordable health care coverage to employees. To determine if your part-time employees qualify, you need to understand the ACA requirements.
One of the most important parts of the ACA is the definition of a “full-time employee”. A full-time employee is someone who works more than 30 hours a week. However, a part-time employee is one who works less than 30 hours a week.
If your part-time employees work less than 20 hours a month, you can offer them affordable group rates. For the most part, this is not a requirement. But it can be a great way to lower your costs.
Another ACA requirement that might apply to you is the “shared responsibility for employers” calculation. This is a calculation that is similar to the Internal Revenue Code’s calculation. As long as you meet the “sharing” requirement, you will not have to pay penalties.
Providing health insurance to part-time workers can increase morale and retention. It can also be a great way to attract talented, hard-working employees. Having an affordable benefits package also shows that your business cares about its employees.
The ACA also allows for the introduction of flexible spending accounts or health savings accounts. These can be combined with high deductible health care plans.
Many companies, such as Starbucks, Lowe’s, and Costco, offer health care benefit packages to their employees. While these plans do not have to be offered to all of your employees, it’s a good idea to check with your insurance carrier before providing coverage.
If you’re an employer with 50 or more employees, you may have to offer health benefits to your employees. This can help you retain talent, keep your employees healthy, and meet your budgetary needs.
Variable hour employee
The Affordable Care Act (ACA) requires employers to offer health coverage to employees who work at least 30 hours a week. For variable hour employees, this requirement may take some getting used to.
In addition to providing health coverage, an ACA-compliant employer is also required to provide a variety of benefits to its workers. While many of these benefits are mandatory, others are optional. Some employers may choose to include employees who have TRICARE coverage or have VA health coverage. Nevertheless, some benefits are still mandatory for every employee.
An ACA-compliant employer must offer health insurance to new variable hour employees and must maintain coverage for existing variable hour employees. Employers that fail to provide these benefits may be subject to penalties.
Variable hour employees who do not work at least 30 hours a week during the initial measurement period are locked out of healthcare insurance. This can result in a significant gap in coverage. As such, large employers must be aware of the number of hours their variable hour employees are working.
Variable hour employees who average at least 30 hours a week during the measurement period must be offered full-time status for a period of 6-12 months. The ACA has some special rules if the employee works more than 30 hours a week.
For new variable hour employees, the measurement is usually a 3- to 12-month period. However, it can be longer or shorter. Typically, the initial measurement period starts the first month following the hire date.
Variable hour employees are expected to work at least 130 hours per month during the measurement period. The measurement can also be a measure of the number of hours a new employee is expected to work, such as the number of hours a full-time employee works.
Depending on the size of the organization, the measurement period may be longer or shorter. Generally, a longer measurement period is advantageous for organizations that operate during busy seasons. It also allows for more flexibility in scheduling.
A look-back measurement method is another tool that employers can use. This method analyzes the previous period to determine the most appropriate measurement.
Seasonal employees are workers who only work for a company for six months or less. This includes seasonal workers who work for summer swimming pools, parks, and other businesses that employ a number of short-term workers. They do not qualify as ACA-covered full-time benefits-eligible employees, however.
To be eligible for ACA-compliant health coverage, a seasonal employee must meet two requirements. First, the worker must have less than 30 hours of service per week. Second, the employer must offer health insurance to the seasonal worker.
As with any other classification under ACA, there are several requirements that must be met to determine the employee’s eligibility for health coverage. These requirements vary, depending on the type of business. For instance, an educational organization must provide a 26-week gap between the start of the student’s part-time employment and the end of the semester. Similarly, a seasonal worker may be required to pay premiums for health care insurance in July, if they don’t receive coverage in the meantime.
To ensure that your business meets ACA compliance, it’s important to know what the law requires. You may also face hefty penalties if you mislabel employees. Fortunately, there are some guidelines that you can follow to avoid violating the law. Firstly, you should verify that your employees are working the required hours. In addition, you should write out the ACA information in your employee handbook and update it regularly.
If you are unsure about whether your workers are eligible for ACA-compliant health coverage, you can check out Tango’s eligibility tracking feature. The tool will help you calculate the required hours and identify employees who may be on the verge of eligibility. Alternatively, you can seek legal advice. Ultimately, you must decide what works best for your business.
Once you have determined that your seasonal workers are eligible for ACA-compliant coverage, you must be able to measure them. This can be done with a look-back measurement period or a short-cycle measurement period. When you use a look-back measurement period, you can measure your seasonal employees’ hours by averaging them over a defined measurement period.