Businesses have a whole host of laws and regulations that they must follow, which is one core reason why many organizations leverage advanced tracking systems such as time tracker software. One new piece of legislation that businesses need to be especially aware of is the Affordable Care Act, which is also colloquially known as ObamaCare.
In the past, companies typically set the cutoff point for when an employee went from a part-time staff member to full-time at 40 hours a week. Once a worker gained full-time status, they also received a host of additional benefits, including employer-sponsored health insurance coverage.
However, the Affordable Care Act will dramatically shift that paradigm. Under the new law's stipulations, employees who work for at least 30 hours a week or more are now eligible for workplace-sponsored coverage. As a result, significantly more Americans will now be able to receive benefits. According to statistics compiled by the University of California – Berkeley Labor Center, approximately 6.4 million U.S. residents work between 30 and 36 hours a week. In addition, close to 9 percent of all employees at firms with 100 staff members or more work this many hours in a given week.
Businesses with 50 employees or more that fail to comply with these new regulations will pay a hefty price. Companies need to pay approximately $2,000 for every qualified worker who does not receive workplace insurance coverage. Forbes calculated that a 60-person firm that does not provide any healthcare coverage to qualified workers will have to pay about $60,000 every year for not complying with the law.
To be compliant with the new government standard, businesses should consider using time tracker software. That way, companies can have an accurate assessment of the workload of its employees and provide government-mandated insurance benefits as necessary.
Learn more about the benefits of automated time collection by downloading the free white paper entitled "Justifying the Switch to Automated Time Collection" from DMS today.