Working with ACA

Despite the many unknowns of the government mandated Affordable Care Act (ACA), we are pleased to report that OnStaff Group has developed an ACA compliance model which conforms to the current government’s expectations, minimizes costs for employers and benefits temporary employees.

For employers, a major concern is determining who is the common-law employer. As clearly defined under the IRS code 4980H, staffing firms who operate under the traditional temporary staffing model qualify as the common-law employer. The test which determines this examines multiple factors including recruiting, screening, hiring, assuming responsibility as an employer of record for payment of wages and benefits, payment of taxes, establishing employment policies and exercising the right to discipline, terminate or reassign the employee. OnStaff Group clearly meets all these criteria and eliminates any liability risks.

For temporary employees, their eligibility for coverage will begin at Day 91 of an assignment that is at least 120 days. For OnStaff Group employees who work short- term assignments, they are considered as a “variable headcount”. These employees are eligible for healthcare benefits if they have worked at least 30 hours a week and 1,560 hours in the previous 12 month period.

Currently the major – and obviously critical – unknown is exact costs. Costs are dependent on how many employees sign up for the coverage and the resources required for the additional mandated record-keeping. With open enrollment having begun November 15, we expect to have more definitive answers on costs shortly.

To date, our employer clients are very happy with the cost structure we have developed for the ACA compliance. Employers who would like to know more about how we are handling this complex issue, please contact us.

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