With time growing short before penalties take effect for noncompliance with the Affordable Care Act (ACA), the time to get your house in order is now. Here are 5 reasons to offer health insurance:
The fringe portion of the prevailing wage was intended to provide benefits like health insurance and retirement plans for your workers. Using the fringe as intended protects your employees, helps you comply with the ACA, and reduces your payroll burden, which subsequently results in reducing taxes overall.
Some contractors have been reluctant to use the fringe to provide benefits, worried that employees will quit when they no longer get these dollars as additional cash wages. Now every contractor is in the same boat. By January 2015, every individual will soon be required to have health insurance - and obtaining it pre-tax through an employer is much easier and less expensive than purchasing it on an individual basis.
Spending on public works projects has slowed, and the number of contractors bidding on projects has increased. If you're a small company, how will you stack up against a larger competitor who is mandated to provide health insurance, and can submit bids that reflect the payroll savings this creates?
Proof of coverage may become a requirement to qualify for government contracts. Several municipalities including Memphis, TN, and Athens, OH, require that bidders prove they offer minimum health insurance coverage to employees. It's reasonable to expect that this could begin to be required for projects funded by the federal government.
There's no reason to navigate the ACA landscape on your own. We've specialized in providing bona fide benefits for more than 30 years, and we're ready to help you prepare for the Affordable Care Act and beyond.