Healthcare Reform Penalties & How To Avoid Them
Avoid Hassles by Using a Temporary Construction Staffing Company
With the implementation of the Affordable Care Act (Obamacare) many employers are now required to abide with the mandates regarding healthcare reform. The intended goal of this legislation is to ensure that everyone in the United States has access to health insurance either through their employer or state-subsidized coverage through an exchange. This new law can present a challenge to many employers. Using a temporary construction staffing company, however, can easily alleviate this burden.
How to Avoid Penalties under Health Care Reform
The regulations concerning health care reform can be very confusing. Failure to understand what steps need to be taken in order to avoid being penalized by the government can become an expensive proposition for many large employers. Some employers have taken drastic measures such as cutting the hours of their employees or laying off their skilled labor in order to avoid complying with the Affordable Care Act. This has led to disgruntled employees who may now be pushed into financial distress.
Construction Labor Contractors offers a better way for construction businesses to avoid health care reform penalties while maintaining their construction staffing needs. We take the hassle out of complying with the new regulations because we fulfill your temporary construction labor staffing with skilled workers employed by our company, thus relieving your requirement to provide health care benefits under the new law. You get the temporary skilled labor your projects require while avoiding the challenges and expense of complying with health care reform.
- Use one proven source for all your employee administrative needs.
- Staff your jobs with qualified, quality people.
- Stop worrying about recruitment, layoffs and unemployment.
- Alleviate HR, payroll, risk management and payroll issues.
- Get OSHA trained skilled workers.
- Temporary employees costs less than hiring full-time employees.
- Reduce benefit costs.
- Limit the amount of overtime you pay full-time employees.
- Pay for only the skilled laborers you need.
- Reduce unemployment claims.
- Avoid workers’ compensation claims.
What Health Care Reform Means to Employers
While employers are not specifically mandated to supply health insurance benefits to their employees, they may be subject to penalties under certain conditions beginning this year. However, many larger businesses might find themselves falling under the category of those who will be penalized for not offering health care coverage to their full-time employees.
Small businesses with fewer than 50 employees are not subject to penalties if they do not offer this benefit. However, if they do offer health insurance to their employees at a reasonable cost, they are eligible to receive a two-year tax credit for up to 50 percent of their premium costs beginning in 2014. It is hoped that this incentive will result in more small business owners offering coverage to their employees and a lessening on the burden placed on state-subsidized insurance exchange.
Employers with 50 Employees Are Hardest Hit
The new health care reform focuses more on business owners who employ 50 or more workers. These employers have to be especially careful to avoid being assessed penalties for not offering health insurance. The purpose of imposing penalties on these businesses is to encourage offering health insurance to workers and to help the government recoup their costs from subsidizing the health care exchanges.
Employers with more than 200 employees will be required to automatically enroll new employees in their existing health care plan. This is does not need to take place immediately upon hire, as exceptions are made for required waiting periods. The employee must give their employees a notice of their right to opt out of this coverage.
Businesses with 50 employees or more must provide notice of the health care coverage options available, including obtaining coverage through the state-subsidized exchange.
Employers can be penalized for offering coverage that is deemed too expensive. If even one employee signs up for subsidized coverage through an exchange, the employer will be penalized. The penalty will be the lesser of the total of $3,000 per full-time worker who obtains this subsidized coverage or $750 for each full-time worker they employ.
If an employer does not offer health care insurance or if even one employee out their total workforce receives subsidized health care coverage from an exchange, the employer will be penalized. The penalty is based on the number of full-time employees at a rate of $2,000 per employee. However, the employer will be exempt from paying penalties for the first 30 employees.
Remember: Using a temporary construction staffing company like CLC is the way to avoid the burden to your business by the Affordable Care Act. When you need a reliable, trustworthy and hardworking crew, contact CLC. We’re always here to help with construction staffing needs for any size project.
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