Today, I’m up with a column that identifies what ObamaCare’s employer mandate really means for small businesses.
Note to Members of Congress and HR consultants – it’s not what you think.
Most of the attention on this particular mandate has focused on the idea that employers can avoid the twin threats of costly insurance or hefty fines if they pare back full-time employees to part-time status.
By not employing 50 full-time employees a small business can avoid triggering the mandate, or so the thinking goes.
But the reality is that ObamaCare adds up the total amount of part-time hours worked to create “full-time equivalent” (FTE) employees that count toward the 50 employee total. Meet or exceed the threshold, and say hello to huge compliance costs.
This is why a proposed legislative fix won’t actually solve the underlying problem, which is capping the amount of hours a small business can pay out to 50 FTEs – whether they are full-time, part-time or some combination of both.
It’s time for Congress to take a closer look at how ObamaCare’s employer mandate works and repeal it.
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