Key Ways the Affordable Care Act Affects the Staffing Industry
President Barack Obama signed into law the Affordable Care Act in March of 2010. Making healthcare accessible and affordable to all changed the requirements for benefits imposed on staffing firms. The effects felt by businesses have impacted staffing companies increasing their risks. Employee benefits liability insurance covers those increased risks staffing firms now face.
The average number of employees throughout the year is how the need for health insurance is calculated for any business. Temporary staff for short-term positions are now counted in that number as employees. The staffing firm needs to now offer appropriate coverage or face penalties.
ome employers use staffing firms to fill positions to avoid having to offer benefits. When a company reaches fifty employees, they must offer a benefits package. By putting that onto the staffing firm, clients expect the staffing firm to be responsible for providing health coverage.
The ACA has definitely impacted the types of employees hired in the last several years. More companies are seeking to hire part-time and temporary workers helping staffing firms grow but also increasing their liabilities.
When more employees need benefits, the risks associated with properly meeting their insurance needs also rises. Employee benefits liability insurance protects the financial assets of the company when there is an error, omission or act during the administration of the employee benefits package.