RE: Obamacare part 2
October 4, 2013 at 3:11 am
(This post was last modified: October 4, 2013 at 3:21 am by Lumpymunk.)
$2,000 is the penalty for not offering coverage... which is what we're talking about. Both by converting FTEs to PTEs (not penalized) and by just ignoring the law.
This is assessed over a period of 12 months.
Lets do pretend Maths using the fantasy of a $137 for coverage, assuming 100 employees.
$137 * 12 * 100 = $164,400
Now working backwards using the $2,000 penalty for just not offering minimum essential coverage.
100 - 30 * 2,000 = $140,000
...and thats why businesses are making people part time.
0 is less than $140,000
Even if they do offer coverage, if the coverage isn't good enough THEN comes the 3,000 hit. If the cost of that coverage exceeds 9.5% of the employees annual income the company gets blasted even harder.
Simplest solution... remove FTEs and bring on PTEs.
Zero dollars will always be cheaper than hundreds of thousands.
I didn't say "since 2009 the sole responsibility of the change in full timers to part timers is the ACA." Nice try putting words in my mouth though. What I've said is that RIGHT NOW over the last year those nice stable lines in your graph are no longer flat. Of course all that exists right now is first hand accounts from companies, I won't be able to make a pretty graph to translate all these first hand accounts into a pretty line for you until sometime in 2014.
This is assessed over a period of 12 months.
Lets do pretend Maths using the fantasy of a $137 for coverage, assuming 100 employees.
$137 * 12 * 100 = $164,400
Now working backwards using the $2,000 penalty for just not offering minimum essential coverage.
100 - 30 * 2,000 = $140,000
...and thats why businesses are making people part time.
0 is less than $140,000
Even if they do offer coverage, if the coverage isn't good enough THEN comes the 3,000 hit. If the cost of that coverage exceeds 9.5% of the employees annual income the company gets blasted even harder.
Simplest solution... remove FTEs and bring on PTEs.
Zero dollars will always be cheaper than hundreds of thousands.
Quote:Still going to say it's Obamacare that drove the changeover from full-time to part-time work?
I didn't say "since 2009 the sole responsibility of the change in full timers to part timers is the ACA." Nice try putting words in my mouth though. What I've said is that RIGHT NOW over the last year those nice stable lines in your graph are no longer flat. Of course all that exists right now is first hand accounts from companies, I won't be able to make a pretty graph to translate all these first hand accounts into a pretty line for you until sometime in 2014.
