Co-Employer Talk: The Affordable Care Act
Back in 2015, companies were hit with the first full year of implementation for the Affordable Care Act (ACA) – expanding Medicaid coverage and more opportunity for Americans to select their healthcare plans. Not only that, but it gave companies and co-employers alike a larger framework to regulate compliance, performance, outcomes, and effectiveness of healthcare providers. This spring of 2016 brings about the first ACA reporting and audits. Here are some facts and benefits of ACA, taken from Entrepreneur.com:
Increased Ability To Recruit Top Tier Talent
According to a data analysis by researcher Michael Kleinrock, employers – including, of course, staffing companies – “can compete more effectively for talent and higher-caliber employees because they can now offer discounted healthcare benefits”. Of course, smaller companies aren't required to offer benefits, but growing organizations are required healthcare offerings by law.
Increased Co-Employment Need
In 2015, ACA officially came into effect for companies with 100+ employees; as of 2016, companies with 50-99 employees must comply as well. Of course, this creates an unsecured risk for employers who run companies this size. Thus, companies with large offices need very well-organized HR, payroll, and finance services. In this case, the use of a staffing agency is extremely beneficial to any company – especially in terms of payroll and benefits.
Better Productivity
As an employee's health improves, so does their productivity. Those who take advantage of these healthcare services will prove to be more reliable, and have less sick days. Just think about the costs of having perpetually sick employees: delayed projects, extra duties for co-workers, potential client/customer relationship disturbances, etc. The “expense” of excessive sick days create a great case for the benefits of ACA.
Things to Watch Out For:
- 2016 is the first reporting and audit year. Those who aren't compliant will face penalties from the IRS.
- Employees have received new 1095 tax forms from their employers or insurance carriers, as well as updated
information about benefits and coverage.
- Utilize a staffing company/ employer of record to help track and organize this new information to make ACA
compliance for 2016 and the next years easier.
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