Temp Workers and the ACA: How Will You Be Liable?

Temporary workers comprise of more than 3 million people annually, and that number is continuing to rise. The Affordable Care Act, or the ACA, affects all workers—including temporary workers—to some extent. Generally speaking, the ACA requires companies with 100 or more full-time equivalent employees to have health insurance available for the offering starting in 2015. Those that have 100 or more full-time employees, including temp employees, that don’t offer this affordable insurance may be faced with a fine.

Staffing firms are also affected by ACA rules. These firms must offer insurance to full-time temporary workers after 90 days of employment. Variable-hour employees, however, do have a safe harbor option, a push made by the staffing industry in 2014. Companies employing temp workers may still retain liability for their temporary workers, depending on the company. There are some tips of advice for companies wishing to reduce their responsibility for benefits for temp workers. These tips include:

Renounce Control.

Companies wishing to reduce responsibility for benefits for temp workers may want to relinquish control of responsibility to staffing agencies. This allows the agency to regulate employment actions, relieving companies of the extra burden. When companies renounce control to a staffing agency, the agency can also help limit cost and liability by offering ACA guidance.

Plan Comparison.

Employers of temp workers should know exactly what benefits temporary agencies offer. Assessing risk by comparing agency benefits to those available by the client company may help save hassle in the long run.

Research Staffing Agency Qualifications.

Prior to engaging a temporary staffing agency, employers should thoroughly research each and every staffing company to determine its stability and reputability. Companies wishing to employ temp workers should make sure that these agencies don’t violate IRS guidelines, a liability that could fall into the hands of the company utilizing the agency’s services.

Worker Differentiation.

Create clear differences in responsibilities between permanent employees and full-time temp workers. Most temp workers should be excluded from participating in permanent employee benefits, such as gyms and other free facilities. While this may sound insensitive to some, this action makes sure that all employees (not to mention the company) is maintaining business responsibility.

At Sentech Services, Inc., we are motivated to provide our clients with successful tools, tips, and services necessary for creating a dynamic facility and business. Feel free to contact us today to get to know more about our services and how we can help!

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