Employment Monthly

RJ-Staffing January 2013 845-624-0400

Countdown to Obamacare
Are you prepared for January 2014?
Obamas November reelection affirmed the implementation of a sweeping change to the U.S. health care system known as The Patient Care and Affordable Care Act, or more commonly as Obamacare. The complexity of the legislation evaluate what the impact will be for you. The biggest question is of course, how much is this going to cost my business? Well, in order to figure that out you must first evaluate the status of your existing

Big Bucks for Temp Santas!

Its no secret that many jobseekers capitalized on the demand for labor that surged during the holiday season. From Elf to Retail Sales, there were an abundance of opportunities stimulated by the shopping spree that comes this time of year. However, one particular job has been found to be the most

The biggest question is of course, how much is this going to cost my business?

has left many employers both big and small wondering how this is going to impact their businesses. A significant amount of detail surrounding the legislation is still yet to be determined, and even more information is very open to interpretation. However, this months feature article is intended to convey what pieces of the legislation are indeed going into effect within the next year, and what you can do as a local business owner to begin to

workforce. Your exposure in 2014 will depend on your workforce data from 2013, so the best way to forecast your potential for exposure in preparation for 2014 is to use the data available to you from 2012. Effective January 1st 2014 Employers with 50 or more full-time or full-time equivalent employees must offer full-time employees (and dependents) health insurance
lucrative of all seasonal positions. A recent study by Careercast.com found that out of the many positions that became available, temporary Santas raked in the most dough. The study found they made as much as $100 an hour! Also high on the list were Candy Makers and Retail Sales Reps, while Snow Removers and Christmas Tree Lot Attendants ranked near the bottom.

coverage or pay penalties.1 The first logical step then is to determine how many fulltime equivalent employees you currently have working at your organization. The following information comes directly from Edward A. Lenz, the Senior Vice President of Legal and Public Affairs for the American Staffing Association. The formula involves looking to the prior calendar year (2012) and determining for each month (1) the number of full-time employees in the month (i.e., those working on average at least 30 hours per week in the month or 130 hours) (2) plus the number of full-time equivalent employees (FTEs) in the month (determined by adding up the hours of all non-full-time employees in the month and dividing by 120). The total full-time employees plus FTEs for each month divided by 12 gives you your average full-time employees on business days in that year for the purpose of the test. If your company had 50 or more employees with full-time status in 2012 then you will likely be required either to offer health coverage
Lenz, E., Bianchi, A. (2012) Health care reform guide for staffing firms. American Staffing Association Issue Paper, 1.
1

or begin paying penalties next year. For most Rockland and Bergen county businesses, this 50+ rule will immediately eliminate their exposure. However, for larger organizations here is a breakdown of how those penalties will be assessed. Employers that dont offer health insurance coverage will

those 100 full-time equivalents both firms have 25 employees eligible for subsidies. Firm A offers minimum essential coverage to all 100 full-time employees, so they are only responsible to pay the $250 penalty for the 25 employees who receive subsidies and opt out of the coverage, leaving them with a total monthly penalty of

Ultimately, these healthcare changes are inevitable. It is imperative that business owners evaluate their own unique circumstances to measure what their exposure to penalties will be in 2014.

be assessed a monthly tax of $166.67 per employee ($2,000 per year) on all full-time employees beyond the 30 offer health insurance coverage will pay the lesser of that amount or $250 per month ($3,000 annually) on any employee that receives a subsidy.2 For example lets assume there are two identical companies, firm A and firm B. Both firms have 400 employees, of which 100 are full-time equivalent. Out of
th

$6,250 ($250 x 25). Firm B does not offer any coverage whatsoever, so they are required to pay the $166.67 penalty for every employee beyond the 30th employee leaving them with a monthly penalty of $11,687 ($166.67 x 70). This case goes to show the factors that will affect your overall monthly exposure. These factors include the number of full-time equivalents, the number of employees with subsidy eligibility, and the option of providing coverage or not. It is important to note that the government is expected to

employee. Employers that do

Lenz, E., Bianchi, A. (2012) Health care reform guide for staffing firms. American Staffing Association Issue Paper, 4.
2

provide a formula for employers and insurance carriers to determine subsidy eligibility on a plan-by-plan basis prior to the implementation of the legislation.

Ultimately, these healthcare changes are inevitable. It is imperative that business owners evaluate their own unique circumstances to measure exactly what their exposure to penalties will be

in 2014. For additional clarification or information about healthcare reform be sure to contact your RJStaffing representative!

Working Hard

Hardly Working

Rockland County Unemployment Rate: 6.8% New York State Average: 8.9%

Bergen County Unemployment Rate: 8% New Jersey State Average: 9.8%

We hope you enjoyed this monthly dose of employment related news provided by RJ-Staffing. For comments, questions, or employment related needs call 845-624-0400 to talk to your RJ-Staffing representative today.

Shane Rizzotti (Account Executive/Editor in Chief)

RJ-Staffing 257 South Middletown Rd. Nanuet, NY 10954

*All information included in this publication is based on independent research and is not intended as legal advice.