The Contractors Plan logo

Got Questions About ACA Compliance?

As if compliance with prevailing wage law wasn't complicated enough already, government contractors now 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:

Does my business meet the definition of a large employer under ACA?

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.

If I'm not offering major medical now, how will my rates be affected?

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.

Does it make financial sense NOT to use the fringe portion of the prevailing wage to provide worker benefits?

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 ACA, you could face fines of $2000 per employee beginning in 2015.

What if I have fewer than 50 employees?

Employers with fewer than 50 employees who provide health insurance for their workers may qualify for tax credits slated to increase to 50% of premiums paid by eligible small employers in 2015. Not to mention the savings you'll see on your payroll burden.

Ready to see how The Contractors Plan can help you?