Unlocking Compliance: Navigating Affordable Care Act Rehire Rules with Confidence

The Affordable Care Act (ACA) has changed much about staffing processes, and organizations need to understand how ACA requirements influence contractor hiring. Using Bench Direct will enhance the process of complying with ACA and related healthcare policies. It should be noted, though, that the responsibilities associated with ACA cannot be merely outsourced. Organizations must take a proactive approach to ensure compliance. Taking advantage of Bench Direct’s many useful resources, integration of guidelines, and reliable information can increase understanding of ACA requirements, simplify compliance efforts, and help avoid the negative consequences of non-compliance.

The ACA was passed in March of 2010 and represents the most sweeping staff and healthcare regulations in decades. This legislation introduced new guidelines and obligations that have a wide-ranging effect on organization’s staffing processes. The ACA’s goal was to increase healthcare coverage in the U.S., and it defined requirements for healthcare coverage that apply to organizations of a certain size. ACA also established guidelines designed to reduce the cost of healthcare, both for organizations and their employees. Today, many organizations rely on a mix of employees and independent contractors to accomplish their objectives. Navigating the complex maze of rules that are along technologies like Bench Direct can be daunting, but the combination of technology and real-world experience can streamline your processes. The first step toward maximizing the efficiency of your compliance processes is learning about the requirements of the ACA, how they apply to your organization, and then incorporating these into contractor-based systems.

When the ACA was implemented, it placed a burden on staffing and payroll departments to adjust policies and procedures to comply with the guidelines in the Act. The ACA defines a minimum set of healthcare benefits that must be offered to full-time employees, though close attention must be paid to anticipate future changes. The number of hours that equal a “full-time” designation is set to change in 2015, and employers will need to be aware of this shift – as well as other, future shifts – to avoid non-compliance penalties. It is now more important than ever to be aware of potential liabilities. For example, if your organization employs 50 or more staff members, you may be required to offer these full-time employees healthcare benefits that comply with ACA. If not, you could be subject to penalties for not providing the necessary healthcare coverage, and this penalty could exceed $3,000 for each employee who is not covered and who receives a premium tax credit. It is not clear how long this rule will continue to be enforced, but Bench Direct can help you navigate the ever-changing requirements.

The average organization will not be staffed adequately to absorb the unforeseen consequences of non-compliance on your own. Bench Direct can provide you with the resources necessary to protect you from the potentially hefty penalties that can occur when an organization defines an employee improperly, or when one or two employees are not covered. Penalties have been enacted for any organizations that do not comply with the rehire rules. ACA rehire rules affect how you cover employees who have been rehired within 13 weeks of the original termination. In these circumstances, the former employee must be offered the same group healthcare benefits package that he or she had received. If no healthcare benefits were in place at termination, nevertheless the individual would be considered full-time. The former full-time employee could then be said to be qualified for premium tax credits – another example of why it is important to be attached to the most current information available. Bench Direct provides you with an easy way to gain insight into ACA compliance requirements. With the ability to search for established documentation, and the resources to hire from anywhere in the world, your organization will have faster access to tools like Bench Direct that are necessary for successful compliance in the modern world. A little education can go a long way, so explore this topic further using the following article that provides a helpful introduction: Guide to Affordable Care Act Rehire Rules for Employers. Understanding the potential repercussions of misclassifying former employees and rehires is crucial for any business to be able to operate with confidence and clarity when it comes to conducting future business. Now that you have a better understanding of what to look for when rehires are involved with your business, it is time to look for potential gaps in your knowledge. Bench Direct can help you to find all of these things and more!