The Affordable Care Act applies to all businesses that employ 50 or more people. Employers who do not offer health insurance must pay a shared responsibility amount if the government has to subsidize an employee's health care. For the staffing industry, this represents extensive record keeping, reporting, and even process adjustments.
Based on what we now know, one thing is clear: Staffing companies will have to produce an extensive set of reports to understand their financial situation and determine who is eligible. Companies that store this type of data electronically will simply have to design the appropriate reports. You can also get professional help from experts related to ACA reporting penalties.
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Some authorities predict that ACA could ultimately be a boon for temp agencies. Companies will decide to hire employees through a temporary employment agency to avoid any health cost obligations they may incur as a direct employer.
For temporary workers, even if they work full time on a weekly basis for several months, they would not be eligible for insurance due to the retroactive period. In that regard, the rules were drafted very favorably in view of the temporary industry.
A large number of temporary services offer health insurance coverage for stable employees, so it is likely that, in addition to the increase in record keeping and reporting, temporary service companies will find that everything continues. " as usual".
A temp can get more business to help companies manage temps when companies are intimidated by the complexity of the Affordable Care Act. This means that temporary service companies that are well prepared will prosper.
