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Temporary Workers Could be Viable Solution for ACA Compliance

April 6, 2015 | Staffing Blog

ACA Compliance Allegiance Staffing

As businesses continue to struggle with Affordable Care Act compliance, more companies are looking to change the makeup of their entire workforce to more easily comply with regulations and avoid government penalties.

A recent survey of businesses by research company Aberdeen Group reported that with new rules governing full-time employees, businesses are looking to temporary and part-time workers as possible solutions. And yet figuring out exactly how to manage and engage contingent labor while maintaining ACA compliance is a real concern.

According to the study, 35% of organizations are “unclear about what changes they will make to their existing staffing models over the next few years.” And just how to pay for health care coverage for their employees remains an area of significant concern for more than half of all businesses.

Businesses can pay for benefits for full-time employees or face penalties if they don’t provide coverage. Those penalties could cost $2,000 per full-time employee per year. Most companies aren’t willing to incur such fees so, according to the Aberdeen study, businesses can either increase their use of temporary or contract workers or migrate to a largely part-time staffing model. They might also decrease the number of employees but increase the hours worked, which comes with its own set of challenges, including employee burnout.

One thing that’s clear is businesses will need some help managing their contingent workforce. This could include partnering with a staffing agency or managed service provider. This is where Allegiance Staffing can make a real difference. We can take on that burden of hiring employees and ensuring ACA compliance. It’s probably not an area of expertise for a manufacturing company or large retailer, but it is an area of expertise for us.

If your business is looking to expand its temporary workforce, we can employ our proven hiring strategies so you have trained, skilled and committed workers. We can monitor compliance so you aren’t hit with penalties for not providing health care coverage.

Recently we launched a sister company, Allegiance Strategic, the first managed service provider focused specifically on the logistics and manufacturing industries.

So for businesses considering a largely contingent workforce or even a blend approach, working with an experienced staffing agency can remove the headaches of management, paperwork and regulatory changes – allowing the business to focus on its business.