Is Your Staffing Partner Keeping You ACA Compliant?

updating your resume

Wake up!  Do you know your company’s responsibilities to contingent staff under the Affordable Care Act?  Yes, it’s a snoozer of a topic, but take heed! Does your staffing partner increase or decrease those responsibilities?  Does one staffing agency present more risk than another? Are you certain of your answers?

Even if your company is fully compliant with the ACA, your staffing partner may put you at risk.  Assuming your larger company is offering health insurance benefits to those working more than 30 hours per week, the ACA (with a little help from the IRS tax code) uses something called a “control test” to define who actually has day-to-day management (i.e. control) for temporary, contract or contract-to-hire employees.  The government’s approach basically states that it doesn’t matter what the agreement is between your staffing partner and your organization, if you exercise sufficient control over your contingent workers, you’ll be deemed the common-law employer of those employees.  

If that’s the case, then the ACA’s employer mandate states that you must offer those full-timers health care coverage regardless how you classify them.  And that’s where your staffing partner possibly puts you at risk. Being out of compliance with the ACA’s employer mandate may cause your company to incur financial penalties of up to $3000 per employee who is inadequately or not covered.

Bench, Inc. is proud to be part of the solution and to provide a company-subsidized, group health insurance plan to our eligible contract associates.  More professionals than ever are seeking alternative work engagements which are serving to propel the “gig economy.” We want to help our associates reduce the stress of getting and paying for health care coverage.  We’re the “All Good People” staffing company that brings value to our partners through better candidate assessment, reliable execution and transparent interactions. 

Call us today to evaluate our services or learn more!