New ACA mandates have been in effect for over a month.
Is your Middle Tennessee organization “paying”? “Playing”? Or do you feel more like you’re drowning in a sea of restrictive regulations?
The Employer Shared Responsibility mandate (commonly referred to as “Pay or Play”) has made it even more challenging for your business to stay compliant, control costs and still get work done.
We’re here to help.
Today, Wood Personnel is providing a quick overview of the “Pay or Play” mandate. This summary is not a substitute for professional legal advice, but it can help you understand how our Hendersonville employment agency can make managing required changes easier.
The Employer Shared Responsibility Mandate: a Brief Overview
- “Large employers” (i.e., employers with at least 50 FTEs, including full-time-equivalent employees) have the choice to either offer coverage that meets federal requirements (Play) or to be assessed one of two financial penalties (Pay) for non-compliance.
- If, as a “large employer,” you do not offer a significant portion of your FTEs (70% in 2015, 95% in 2016) and their dependent children coverage that is both affordable and provides a minimum level of coverage, you may be subject to a penalty.
- “Small employers” (i.e., employers with less than 50 FTEs, including full-time-equivalent employees) are exempt from the Employer Shared Responsibility requirement in 2015. However, the mandate will be enforced on these organizations beginning in 2016.
Eventually, the ACA’s Employer Shared Responsibility mandate will have significant cost implications for your organization, regardless of its size: Offer health benefit coverage to the majority of your FTEs or face a costly penalty.
What can you do to control benefits cost? Consider using contingent employees to keep your number of FTEs to a minimum. Here are three smart ways to get your work done with qualified temporaries from Wood Personnel:
- Support your growing organization. Is business up? That’s great! But you need a plan for handling the additional work that comes along with it. Instead of hiring immediately, control your risk and benefits expense by using qualified temporary workers first. You can evaluate individuals on the job, while determining whether or not your upswing in business is permanent.
- Avoid the hire-and-fire cycle of seasonal work. If you have predictable surges in production or business activity, supplement your team with temporary employees during busy periods. You’ll reduce your payoll and exposure to ACA penalties, as well as other employment liabilities.
- Project work. Need people with specialized expertise or tough-to-recruit skill sets for a discrete project? Allow us to supply the workers or professionals you need. As the employer of record, we’re responsible for determining benefits eligibility for temporary or contract staff (and providing required healthcare coverage). Once the project is finished, so are your expenses!
Whenever you have a short-term or uncertain hiring need, the right staffing strategy can help your Middle Tennessee business:
- control health insurance costs
- ensure proper compliance with changing ACA regulations
- provide flexible access to reliable workers and talented professionals
Contact our Hendersonville employment agency, or your local Wood Personnel office, to schedule your free staffing and workforce consultation.