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Difficulties adjusting to the Affordable Care Act

Posted on January 17th, 2014 Read time: 1 minutes

New rules having to do with the Affordable Care Act are making it hard for the city of Chandler Az. to afford its temp workers, according to an article in AZ Central. Because the agency hiring the temp workers is not the employer of record, it needs to pay insurance on the new hires. Under the old contract, Chandler would interview, select and place temp workers, thus putting Chandler on as the employer of record. Under the new contract, the company managing the temps will have full control of the process so it is clear the employer is not the city.

Any firm with over 50 full-time employees must offer health insurance to its workers, according to a recent Time article. Full-time as defined under the Affordable Care Act is 30 hours a week, versus the typical 40 hours a week. Temporary workers can step in to fill the gaps left in companies that cannot afford the additional expenses associated with the new health care laws. By hiring a temporary services company to be the employer of record, companies can save money and time filling out paperwork and focus on what needs to be done.

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