Navigating through the Intricacies of the Affordable Care Act
The introduction of the Affordable Care Act makes the already complicated process of complying with the prevailing wage law even more complex. As a business operator, it is of utmost importance that you follow these terms – or risk paying stiff penalties.
Here are some of the frequently asked questions when it comes to the Affordable Care Act:
Is my business considered a large employer under the terms of the Affordable Care Act?
This issue is quite complicated, especially if your work as a contractor is seasonal. Under the ACA, businesses who have 50 or more FTEs are required to provide health insurance to their full-time employees. If the number of your employees change as the season changes, a plan for the look back period should be strategized as soon as possible.
How are the rates going to be affected if the company is not offering the major medical insurance plan at the moment?
If you have no previous experience with claims, it can be difficult to find coverage that is not as expensive as others. This is the reason why it is better if companies work with a fringe benefits expert like ARCHER JORDAN. As we held the bona fide fringe benefits in trust, you will be included in a bigger risk pool with better coverage options.
Is there any benefit to using the fringe portion of the prevailing wage as cash wages?
As a business, you are going to miss out on a significant amount of savings on payroll burden if you pay the fringe as cash salaries for workers. It would make no sense for you to not use the fringe portion for the benefits plan. You could face ACA fines and penalties if you’re out of compliance with its health insurance provisions.
What if my business has less than 50 employees?
Companies with less than 50 employees are technically not mandated to provide health insurance. There are, however, several benefits that could be accrued by this action. For one, your business can qualify for tax credits.
Deal with the Affordable Care Act effectively with the help of ARCHER JORDAN
Need more information? ARCHER JORDAN has years of experience when it comes to providing employment benefit plans to numerous companies. As the ACA is a complicated financial matter, it would be wise to seek the help of a company like ARCHER JORDAN for further assistance.
To know more about the Affordable Care Act and how it affects your company, contact us now at +1 888-745-0754!