ACA and Temporary Employees

Unfortunately the confusion resulting from the troubled roll out of the Affordable Care Act (ACA) generated misunderstandings regarding employer responsibilities and temporary employees. Recently, Joanne from Bolt Staffing spoke with a client who thought that their company may have to provide medical coverage to temporary employees. While she knew better, it gave her an opportunity to contact the legal people at the American Staffing Association (ASA) to get a definitive statement.

Here is the email from ASA’s legal people:

Regarding your inquiry as to whether employers are responsible for providing ACA benefits to their temporary employees, the answer is generally no.  The great majority of temporary staffing firms should be considered the common law employer and, in such cases, the client will not be the responsible employer.  Moreover, final regulations issued in February make clear that, even in situations where the IRS may view the client as the common law employer (e.g., PEO and similar arrangements such as payrolling) benefits offered by the staffing firm will be viewed as having been offered by the client for purposes of ACA compliance provided certain requirements are met. 

As the Federal government works the kinks out of the ACA, we are bound to hear more speculation about our responsibilities as employers.  However, the confusion breeds rumors that may or may not be based in facts. If you have any questions about your responsibilities in this dynamic area please call your staffing firm or employment law attorney before you make any decisions affecting your temporary employees.

Source: ACA Misunderstandings, Joanne Sanders Bolt Staffing


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