A First Time Employer’s Quick Guide to the Affordable Care Act

Compliance with the Affordable Care Act is Must

The Affordable Care Act (ACA), otherwise referred to as Obamacare, is the latest health care reform law in the US. However, since the ACA is a complicated piece of legislation, not many people understand the specific nuances that come with the Affordable Care Act. This leads to the lack of grassroots support for the ACA, which shrouds and limits the enforcement of this specific law.

To further empower the ACA, it is important to educate the people on their rights under Affordable Care Act and know how the ACA affects the fringe benefits portion of the federal prevailing wage laws.

What is the Affordable Care Act (ACA)?

The Affordable Care Act is a healthcare legislation that aims to provide Americans with affordable quality health insurance and reduce the amount of healthcare spending in America. The reforms of the ACA include changes in rights and protections, new benefits, taxes and tax breaks, guidelines for insurance companies, spending, and funding, among other changes in the sectors of the healthcare system in the country.

The ACA makes health coverage more affordable as it lessens the premium and out-of-pocket costs of individuals and families who were previously priced out of their past health insurances. Before, people were discriminated against based on their health status, financial status, or even gender. Now, the ACA has limited the amount that people can be charged with, and has spread risks to all insured participants equally to end discrimination.

Since a healthcare insurance that meets the minimum essential coverage is mandated, participants would be able to utilize their group buying power. This’ll help them get cost assistance and match plans under the Affordable Care Act.  

The Mandate of the Affordable Care Act on the Federal Prevailing Wage Laws

The Davis-Bacon Act and the Service Contract Act are federal prevailing wage laws that necessitate covered government contractors to pay prevailing wages and fringe benefits to employees depending on the wage determination made by the Department of Labor. In memorandum 220, the relationship between the ACA and these prevailing wage laws were explained, including the issue of taking credit for Affordable Care Act premiums and the payment for the mandated prevailing wage fringe benefits.

In the DBRA and SCA, contractors can fulfill their fringe benefits requirements by paying employees the cash equivalent of the fringe benefits specified in the wage determination. However, with the introduction of the Affordable Care Act, employers with more than 50 employees are now required to provide healthcare to their workers with the use of the fringe benefits portion of the prevailing wage. Failure to do so will result to stiff penalties of up to $2000 per employee (minus first 30 employees).

First Time Employers Should Seek Assistance from ARCHER JORDAN

Are you a small, medium, or large scale company running a business for the first time? It is necessary to know how the Affordable Care Act would impact the way you provide prevailing wages and fringe benefits to your employees.

ARCHER JORDAN can help you manage those fringe benefits to your employees, give advice in terms of the strategy with dealing with ACA, DBRA, and SCA requirements, and more. For more inquiries about the Affordable Care Act, contact ARCHER JORDAN at +1 888-745-0754.

5-Easy Steps to Fringe Benefit Compliance

In this FREE guide we’ll show you how to create a fringe benefit plan that secures your business

   
           
   

Categories

ACA
AD & D
Affordable Care Act
AHCA
AK Prevailing Wage
AL Prevailing Wage
AR Prevailing Wage
AZ Prevailing Wage
CA Prevailing Wag
CA Prevailing Wage
CA Prevailing Wage 401k
Call Centers
CO Prevailing Wage
COBRA
Compliance Tips
Critical Illness
CT Prevailing Wage
Davis Bacon Act
DE Prevailing Wage
Department of Labor
Disability Insurance
Education
Employee Benefits
Employee Training
Employer Tips
ERISA
Farm Labor Plan
Fixed Indemnity
FL Prevailing Wage
Fringe Benefits
GA Prevailing Wage
Government Contracting
Government Contractors
Health and Welfare Wrap
Healthcare Benefits
HI Prevailing Wage
Hospitality
Hospitality Benefits
Hourly Seasonal Workers
Hourly Workforce
Human Resources
ID Prevailing Wage
IL Prevailing Wage
IN Prevailing Wage
IO Prevailing Wage
IRS
KS Prevailing Wage
KY Prevailing Wage
LA Prevailing Wage
Limited Medical
MA Prevailing Wage
Major Medical Insurance
McNamara-O’Hara Act
MD Prevailing Wage
ME Prevailing Wage
MEC
MEC and MVP
MEC MVP
MI Prevailing Wage
MN Prevailing Wage
MO Prevailing Wage
MS Prevailing Wage
MT Prevailing Wage
MVP
NC Prevailing Wage
ND Prevailing Wage
NE Prevailing Wage
NH Prevailing Wage
NJ Prevailing Wage
NM Prevailing Wage
NSRMCA Members
NV Prevailing Wage
NY prevailing wage
OH Prevailing Wage
OK Prevailing Wage
OR Prevailing Wage
OSHA
PA Prevailing Wage
Part Time Employees
Podcast Guest Appearances
Prevailing Wage
Prevailing Wage Workers
Restaurant Group Benefits
Retirement Plans
RI Prevailing Wage
SC Prevailing Wage
SCA Audits
SCA Compliance
SD Prevailing Wage
SDVOB
SDVOSB
Seasonal Workers
Service Contract Act
Small Business
Staffing
State Prevailing Wage
SUB Plan
Supplemental Benefits
Supplemental Unemployment
Third Party Administrator
TN Prevailing Wage
Trust Services
TX prevailing wage
Uncategorized
UT Prevailing Wage
VA Prevailing Wage
Violations – SCA
Voluntary Benefits
WA Prevailing Wage
Wellness
WI Prevailing Wage
Workplace Health
Workplace Safety
WV Prevailing Wage
WY Prevailing Wage