As if compliance with prevailing wage law wasn't complicated enough already, government contractors have to be concerned about complying with the Affordable Care Act (ACA) as well. Healthcare reform has added even more twists and turns to the compliance roadmap. Some of the questions you should be asking yourself are:
This is not a simple question with a simple answer, especially for contractors whose work is seasonal. There's a look-back period for determining whether your business had 50 or more FTEs. If your employee count changes based on contracts or seasons, it's even more important to put a strategy in place now. Use our worksheet to check your status.
Good question. If you don't have any claims experience, it will likely be difficult and expensive for you to find coverage. That's why it's good to work with an expert such as The Contractors Plan. Also, because our health insurance product is held in trust, you'll be part of a larger risk pool with better options.
Not really. If you're paying the fringe as cash wages, you're missing out on significant savings on payroll burden. And if you're out of compliance with the ACA, you face per-employee penalties under the employer mandate.
Employers with fewer than 50 employees are not subject to the employer mandate, and those who provide health insurance for their workers may qualify for small-business health care tax credits. Not to mention the savings you'll see on your payroll burden.
As of 2026
The ACA's employer shared-responsibility mandate has been in effect since 2015 and remains law; the original penalty figures ($2,000 / $3,000 per employee) and the 9.5% affordability threshold are indexed and change annually. The individual-mandate penalty was reduced to $0 in 2019. Confirm current-year figures with your compliance advisor.