by By Joyce M. Rosenberg
In this Monday, March 16, 2015 photo, Brad Mete, a managing partner at Affinity Resources, a temporary staffing company, left, talks new recruiter Obed Blanco, right, through procedures on his first day at work at their Miami Lakes, Fla., office. Complying with the Affordable Care Act is costing small businesses like Mete's thousands of dollars that they didn't have to spend before the new regulations became law. (AP Photo/Wilfredo Lee)
Complying with the health care law is costing small businesses thousands of dollars that they didn't have to spend before the new regulations went into effect.
Brad Mete estimates his staffing company, Affinity Resources, will spend $100,000 this year on record-keeping and filing documents with the government. He's hired two extra staffers and is spending more on services from its human resources provider.
The Affordable Care Act, which as of next Jan. 1 applies to all companies with 50 or more workers, requires owners to track staffers' hours, absences and how much they spend on health insurance. Many small businesses don't have the human resources departments or computer systems that large companies have, making it harder to handle the paperwork. On average, complying with the law costs small businesses more than $15,000 a year, according to a survey released a year ago by the National Small Business Association.
"It's a horrible hassle," says Mete, managing partner of the Miami-based company.
But there are some winners. Some companies are hiring people to take on the extra work and human resources providers and some software developers are experiencing a bump in business.
Companies must track workers' hours according to rules created by the IRS to determine whether a business is required to offer health insurance to workers averaging 30 hours a week, and their dependents. Companies may be penalized if they're subject to the law and don't offer insurance.
In this Monday, March 16, 2015 photo, Brad Mete, a managing partner at Affinity Resources, a temporary staffing company, poses for photos in his Miami Lakes, Fla., office. Complying with the Affordable Care Act is costing small businesses like Mete's thousands of dollars that they didn't have to spend before the new regulations became law. (AP Photo/Wilfredo Lee)
Businesses must also track the months an employee is covered by insurance, and the cost of premiums so the government can decide if the coverage is affordable under the law.
Many companies have separate software for payroll, attendance and benefits management and no easy way to combine data from all of them, says John Haslinger, a vice president at ADP Benefits Outsourcing Consulting. And early next year, employers must complete IRS forms using information from these different sources. The process is more complex for businesses with operations in different states.
Mike Patton's health insurance broker is handling the extra administrative chores for his San Francisco Bay-area flooring company DSB Plus, but he's paying for it through higher premiums—about $25,000 a year.
To pay for the extra services the business is getting from his broker, Patton cut back on workers' bonuses and raises.
"They understand it didn't emanate from us," Patton says. "They're just disappointed that $25,000 could have gone into a bonus pool."
In this Monday, March 16, 2015 photo, Brad Mete, a managing partner at Affinity Resources, a temporary staffing company, left, talks with recruiters about which job orders still need candidates to fill the positions, during a meeting at their Miami Lakes, Fla., office. (AP Photo/Wilfredo Lee)
That kind of spending has led to a surge in business for payroll providers, human resources consultants and health insurance brokers that track hours and keep records for small businesses, and even file documents with the government.
Sales have more than doubled in the last year at human resources provider Engage PEO. Many of its clients are small companies.
"They want to comply with the law and don't want to be subject to an unintended penalty," says Dorothy Miraglia King, executive vice president of the St. Petersburg, Florida-based company.
Businessolver, a company whose primary business is creating software to help companies administer benefits, also reports an uptick in demand. In 2013, when clients started becoming aware of the law's paperwork requirements, they asked for software that could take care of all their needs, says Rae Shanahan, a human resources executive at the West Des Moines, Iowa, company.
"The traditional systems that people have can't handle it," she says.
Explore further: Some businesses use part-time to meet health law
© 2015 The Associated Press. All rights reserved.
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© Medical Xpress 2011-2014, Science X network
by By Joyce M. Rosenberg
In this Monday, March 16, 2015 photo, Brad Mete, a managing partner at Affinity Resources, a temporary staffing company, left, talks new recruiter Obed Blanco, right, through procedures on his first day at work at their Miami Lakes, Fla., office. Complying with the Affordable Care Act is costing small businesses like Mete's thousands of dollars that they didn't have to spend before the new regulations became law. (AP Photo/Wilfredo Lee)
Complying with the health care law is costing small businesses thousands of dollars that they didn't have to spend before the new regulations went into effect.
Brad Mete estimates his staffing company, Affinity Resources, will spend $100,000 this year on record-keeping and filing documents with the government. He's hired two extra staffers and is spending more on services from its human resources provider.
The Affordable Care Act, which as of next Jan. 1 applies to all companies with 50 or more workers, requires owners to track staffers' hours, absences and how much they spend on health insurance. Many small businesses don't have the human resources departments or computer systems that large companies have, making it harder to handle the paperwork. On average, complying with the law costs small businesses more than $15,000 a year, according to a survey released a year ago by the National Small Business Association.
"It's a horrible hassle," says Mete, managing partner of the Miami-based company.
But there are some winners. Some companies are hiring people to take on the extra work and human resources providers and some software developers are experiencing a bump in business.
Companies must track workers' hours according to rules created by the IRS to determine whether a business is required to offer health insurance to workers averaging 30 hours a week, and their dependents. Companies may be penalized if they're subject to the law and don't offer insurance.
In this Monday, March 16, 2015 photo, Brad Mete, a managing partner at Affinity Resources, a temporary staffing company, poses for photos in his Miami Lakes, Fla., office. Complying with the Affordable Care Act is costing small businesses like Mete's thousands of dollars that they didn't have to spend before the new regulations became law. (AP Photo/Wilfredo Lee)
Businesses must also track the months an employee is covered by insurance, and the cost of premiums so the government can decide if the coverage is affordable under the law.
Many companies have separate software for payroll, attendance and benefits management and no easy way to combine data from all of them, says John Haslinger, a vice president at ADP Benefits Outsourcing Consulting. And early next year, employers must complete IRS forms using information from these different sources. The process is more complex for businesses with operations in different states.
Mike Patton's health insurance broker is handling the extra administrative chores for his San Francisco Bay-area flooring company DSB Plus, but he's paying for it through higher premiums—about $25,000 a year.
To pay for the extra services the business is getting from his broker, Patton cut back on workers' bonuses and raises.
"They understand it didn't emanate from us," Patton says. "They're just disappointed that $25,000 could have gone into a bonus pool."
In this Monday, March 16, 2015 photo, Brad Mete, a managing partner at Affinity Resources, a temporary staffing company, left, talks with recruiters about which job orders still need candidates to fill the positions, during a meeting at their Miami Lakes, Fla., office. (AP Photo/Wilfredo Lee)
That kind of spending has led to a surge in business for payroll providers, human resources consultants and health insurance brokers that track hours and keep records for small businesses, and even file documents with the government.
Sales have more than doubled in the last year at human resources provider Engage PEO. Many of its clients are small companies.
"They want to comply with the law and don't want to be subject to an unintended penalty," says Dorothy Miraglia King, executive vice president of the St. Petersburg, Florida-based company.
Businessolver, a company whose primary business is creating software to help companies administer benefits, also reports an uptick in demand. In 2013, when clients started becoming aware of the law's paperwork requirements, they asked for software that could take care of all their needs, says Rae Shanahan, a human resources executive at the West Des Moines, Iowa, company.
"The traditional systems that people have can't handle it," she says.
Explore further: Some businesses use part-time to meet health law
© 2015 The Associated Press. All rights reserved.
Medical Xpress on facebook
Related Stories
Some businesses use part-time to meet health law
Dec 31, 2014
Many businesses in low-wage industries have hired more part-time workers and cut the hours of full-timers recently to soften the impact of new health law requirements that take effect Thursday, some consultants say.
Many spend 15 minutes or less picking health insurance
Sep 08, 2014
Many people (41%) spent 15 minutes or less researching their health insurance plan options during the 2013 open enrollment period, according to an Aflac survey, out Thursday.
New survey of employers about the health insurance market
Nov 20, 2014
A new nationally representative survey of employers—the largest purchasers of health care in the country— shows that most are unfamiliar with objective metrics of health plan quality information. The survey, conducted ...
Supreme court: Some companies don't have to cover birth control
Jun 30, 2014
(HealthDay)—Family-owned companies don't have to comply with a provision of the Affordable Care Act that requires them to offer insurance coverage for contraception if that requirement violates their religious ...
US health law insurance site delayed one year (Update)
Nov 27, 2013
The Obama administration is delaying yet another aspect of its troubled health care law, putting off until next November the launch of an online portal to the health insurance marketplace for small businesses until the hobbled ...
Recommended for you
Changes in health care delivery essential to combat chronic disease
1 hour ago
Chronic disease accounts for 7 of every 10 deaths in the United States and more than 75% of total health care costs. Among people 65 years old and older, over 92% suffer from one or more chronic diseases. ...
When it comes to health care, young gay men are falling through the cracks
3 hours ago
Emerging adulthood is a complex time for anyone. It ranges from late adolescence to one's mid-twenties – ages when we are seeking to establish our identities in social contexts, and transition from childhood ...
WHO chief wants tobacco firms pushed 'out of business'
4 hours ago
World Health Organization chief Margaret Chan urged global action on Wednesday to drive tobacco companies "out of business" and hailed progress in tackling smoking in many countries.
Clinical guidelines study finds potentially serious drug clashes
4 hours ago
Blindly following recommendations for drug prescriptions in national clinical guidelines for conditions including diabetes, depression and heart failure will often result in potentially serious drug interactions, according ...
Longer duration of breastfeeding linked with higher adult IQ and earning ability
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