NE school districts may cut hours, jobs to meet ACA
February 26, 2013
MN House passes exchange bill
March 6, 2013
Show all

Contract workers and the ACA

As employers prepare for the changes mandated by the Affordable Care Act, there are several key factors to keep in mind to avoid incurring major penalties.

One of the most controversial legislation pieces concerns part-time workers. Under the ACA, employers with 50 or more staff members must extend healthcare benefits to all employees who work at least 30 hours per week. Many state and local governments and schools districts are grappling with how to afford the requirement, and are considering the options of limiting employee hours, paying the penalty or reassigning employees as contract workers.

David Smythe, chair of the School of Business at the University of Phoenix Colorado campus, recently told seminar attendees contract workers are not included in full-time equivalent equations that determine whether employers are large enough to have to extend coverage, according to The Gazette.

However, changing employees into contract workers could be considered fraudulent, stated Michael Newman, an attorney and contributor for Supra Law News. The IRS is very familiar with the trend of employers misclassifying workers for tax purposes and federal regulators are likely aware many entities may seek this resort to avoid ACA-related costs.

Share this:
Erin Woulfe
Erin Woulfe
Erin Woulfe likes to write about things that matter. Keeping her finger on the pulse of what’s happening in the public sector world, she blogs about the latest legislative news and employee benefit trends that affect our school, city and county clients. She’s been with NIS since 2002. “I love connecting to our clients and providing them with the tools they need in order to administrate their plan,” says Erin. “Whether that be materials to educate their employees on certain benefits, how to effectively communicate change within an organization or just providing tips and how-to’s to help them make their job easier.”

Leave a Reply

Your email address will not be published. Required fields are marked *