How to Calculate The Number of Full Time Equivalent Employees...

Understanding Employer Penalties... 

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Contact MIG today for a complete review of your potential liabilities and costs associated with ACA compliance. We offer many solutions for temporary staffing firms to provide relief from the penalty associated with noncompliance.  With little to no cost to the employer we can provide coverage to the employees and enrollment services.  We also utilize a program administrator for our product so there is little additional HR headaches associated with plan administration or COBRA and support for your internal staff. Finding insurance coverage compliant with the Affordable Care Act for temp staffing companies is certainly a task we are up to. We have solutions to fit your needs and not only will you be compliant but your employees will have decent options that will increase stability in your workforce.  

We are a one stop shop for all your insurance needs and we make the process easy for our clients to know they are covered correctly. The ACA Employer Mandate / Employer Penalty was delayed until 2015. Originally set to begin in 2014, the employer mandate was delayed until 2015 / 2016. The ObamaCare "employer mandate" is a requirement that all businesses with over 50 full-time equivalent (FTE) employees provide health insurance or pay per month the Employer Shared Responsibility Payment on their federal tax return.

Here are some bullet points detailing the employer mandate in summary:

  • The employer mandate is based on full-time equivalent employees, not just full-time employees. 
  • The fee is based on whether or not you offer affordable health insurance to your employees that provides minimum essential coverage outlined. 
  • In 2015 employers with more than 100 FTEs will need to cover 70% of their full-time employees. By 2016 employers employers with more than 50 FTEs will need to provide coverage to 95% of their Full-Time employees. 
  • The annual fee is $2,160 per employee if insurance isn't offered 
  • If at least one fill-time employee received a premium tax credit because coverage is either unaffordable or does not cover 60 percent of total costs, the employer must pay the lesser of $3,240 for each of those employees receiving a credit or $750 for each of their full-time employees total. 
  • The fee is a per month fee due annually on employer federal tax returns starting in 2015 for small businesses with 100 or more full-time equivalent employees (2016 for those with 50-99). So the per month fee is 1/12 of the $2,160 or $3,240 per employee. 
  • Unlike employer contributions to employee premiums, the employer shared responsibility payment is NOT tax deductible. 
  • For the most up to date info the IRS has more information about tax provisions at the following link: Click Here

Temporary Staffing Firms Eliminate ACA Compliance Challenges 

Russ Rymer - Vice President of Sales

Phone: (865) 963-1224

Specializing in Work Comp for Temp Staffing