Employer Health Care Obligations 2015
As the Obamacare Affordable Care Act battle continues in congress, employers are trying to figure out what their healthcare obligations are going to be to their employees. Small companies with 50 employees or more need to have a Health Care Plan for employees who work 30 hours or more. This is going to be costly and time consuming. Small companies typically do not have the administrative and/or financial resources to keep up with changes in Health Care, Insurance Compliance and still run a business.
As the new Affordable Care Art takes effect, companies may struggle… but they must fulfill their Employer Health Care Obligations or be fined. Employee Leasing is one of the best solutions to the Affordable Care Act. Employee Leasing (not what it sounds like) has been around for a long time and is provided by a PEO (Professional Employer Organization).
What does a PEO do?
PEO’s run like clockwork and allow a business owner to outsource employee management tasks, such as benefits, payroll and workers’ compensation, recruiting, and risk/safety management. In short, when you sign up with a PEO your employees become part of a much larger company; a company that has tremendous buying power and influence over insurance carriers. A PEO provides the insurance you need, and handles all of your payroll and payroll tax liabilities. Sometimes a company will use a PEO (Employee Leasing) to get affordable workers’ compensation insurance.
How much does it cost to use a PEO?
A PEO charges a percentage of your total payroll which in most cases cost much less than paying your accountant, or your office administrator.
Learn more about the benefits of employee leasing.