Labor Staffing Agencies – The Answer to Obamacare?
Temporary Labor Staffing Companies Offer Relief to the Affordable Healthcare Law
The new healthcare law is approaching soon. Are you ready to provide affordable healthcare benefits to all of your full-time employees? Construction companies with 50 or more full-time employees can avoid the headaches involved with offering medical benefits to skilled laborers by hiring staffing from cost-effective labor staffing agencies.
Change is Coming Construction Staffing
Whenever there is change, it is common for there to be uncertainties, stress and confusion. Beginning January 1, 2014, President Obama’s healthcare mandate, the PPACA (Patient Protection and Affordable Care Act) commonly referred to as Obamacare, will come into effect. Under this new legislation, companies with 50 or more full-time employees are required to offer affordable health insurance coverage to each employee, or otherwise be faced with a penalty of paying a fine.
The complexity of Obamacare, has many construction companies worried over the changes it will bring. One of the biggest concerns contractors have is how will they be able to afford benefits for all of their full-time employees? One solution to this dilemma is to hire temporary labor staffing companies such as Construction Labor Contractors to manage your workforce and supply you with part-time skilled labor to satisfy all of your construction project needs.
The benefits of hiring a labor staffing agency:
- Worry-free solution to Obamacare requirements. All of our skilled laborers are already provided benefits. We are already well-prepared for the new 2014 legislation.
- Keep your full-time employees below 50, and rely on part-time skilled labor from a labor staffing agency like Construction Labor Contractors.
- Construction staffing is simple with CLC. Our commitment to providing the best skilled labor in the construction market assures that all of your staffing needs are met fast.
How will Obamacare affect my construction business?
Businesses with over 50 employees must offer health insurance to full-time employees, or pay a penalty. Beginning January, 2014, here’s what you need to know:
- The law requires everyone in the United States to obtain health insurance, whether it’s individually or through and employer. If you do not, you will be required to pay a penalty that is equal to the cost of obtaining health insurance.
- Companies with 50 or more full-time employees must provide health care coverage to each employee or pay a fine of $2000-$3000 per employee.
- No one will be denied health care coverage due to a pre-existing condition.
- Annual policy limits on coverage will be eradicated.
- Lifetime policy limits will be eradicated.
Construction contractors that employ union skilled labor will have to continue to pay into union health and welfare funds. If your construction company does not provide health insurance coverage for non-union employees, it would be more practical to do so to avoid the penalty for not having coverage.
It is also important to note that you will not be able to deduct health insurance premiums on your construction business tax return, whether you have coverage through your company or for yourself and family.
What’s considered a full-time employee?
Contrary to what you might think, Obamacare defines a full-time employee as a person that works an average of only 30 hours per week, rather than 40 hours. 30 hours a week used to be considered part time to most, but under this section of the law, businesses must provide health insurance if it employs 50 or more employees who work an average of 30 hours per week. If a contractor does not offer health care benefits to full-time employees, penalties will incur, and over time, these fines are expected to increase as the impact of this mandate travels to the federal budget. With fines approximately $2,000-$3,000 per worker, it is important for contractors to identify which employees are full-time.
Contractors can side-step all of the hassle involved with keeping track of employee hours by working with labor staffing agencies like Construction Labor Contractors. CLC provides a convenient solution to all of the burdensome Obamacare demands. Temporary construction staffing adds just the right amount of skilled labor to your workforce, saving you time and allowing you to concentrate on your goals and deadlines.
What if I decide to pay the penalty to combat the increase in health care costs?
Some contractors may choose to avoid all of the complex work involved in providing health care benefits to their full time employees and pay the penalty instead, believing this may be a less costly alternative. However, this decision is likely to put real a strain on your bottom line and could negatively affect your profit margin.
Another way contractors are combating the increasing cost of health care benefits, is to reduce some of their full-time workforce to part-time status. This strategy can backfire too, as part-time workers can be less dedicated to their work and construction quality suffers.
With your reputation on the line, you need a team of dedicated professionals that are reliable and committed to their trade. Steer clear of all of the hassles associated with Obamacare rules and avoid the penalties involved with the mandate by working with a reputable staffing agency like CLC.