Denver Staffing Agency - ACA FAQs 6 of 8 – Oct. 9, 2013

  • Posted by: J. Kent Gervasini |
  • 10/22/13 |
  • 7:47 AM
Denver Staffing Agency - ACA FAQs 6 of 8 – Oct. 9, 2013

The Affordable Care Act (ACA) imposes major new legal obligations on employers, including new excise taxes, which will increase the cost of supplying temporary and contract workers. The staffing industry is committed to compliance with the ACA, and the American Staffing Association (ASA) is actively working to help staffing firms and clients understand the rules and how they will affect staffing services. These answers to frequently asked questions are designed to help staffing professionals understand the basic ACA requirements and compliance issues.

FAQ 6. Can Staffing Firms Help Clients Reduce Costs by Supplying Part-Time Employees

Staffing Firms Strive to Maximize Their Temporary Employees’ Work Hours By Employing Them Full-Time in Any Given Workweek.
The ACA applies only to full-time employees, defined as those working, on average, at least 30 hours per week. Many businesses rely on part-time employees, and staffing firms can supply them if needed. But clients should be aware that this will not necessarily result in lower staffing costs. Staffing firms strive to maximize their temporary employees’ work hours by employing them full-time during any given workweek. 

...even if a client asks a staffing firm to supply an employee for part of a week,
the employee generally will work the rest of the week for another staffing firm client;
and to the extent the employee is enrolled in the staffing firm’s health insurance plan,
will affect the cost of service

Source: American Staffing Association, Oct. 9, 2013

The information in the article above is intended for general education purposes only and should not be relied upon as a substitute for professional, legal, accounting, medical and/or insurance advice.


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