Posted on 01/10/2013 6:51:52 AM PST by Olog-hai
The Internal Revenue Service warned employers in a new regulatory proposal not to come up with clever schemes to avoid Obamacare’s employer health insurance mandate.
The IRS said it would soon issue “anti-abuse rules” to discourage employers from taking advantage of any regulatory loopholes.
“The Treasury Department and the IRS are aware of various structures being considered under which employers might use temporary staffing agencies (or other staffing agencies)… to evade application of section 4980H [the employer insurance mandate],” the IRS said in a proposed regulatory announcement issued December 28. …
(Excerpt) Read more at cnsnews.com ...
Going out of business would ultimately be cheaper still. Liberal rhetoric doesn’t work too well on empty stomachs.
Tears....America used to be so wonderful. Can't we get that back somehow?
More tears...
This needs to be renamed the Lawyers Full Empl;oyment regulation. Just about every business out there is going to be at the pointy end of this thing.
LOL -- That Is Awesome.
‘tis true - the next thought I had was that two side-by-side fast food joints would be wise to collaborate: use the same employees between them and coordinate schedules to give them all 20 hours a week at each separate business location... everybody wins.
And about that Boehner, do you recall "one" single Dem who didn't want Boehner as Speaker?
Reid has been silent also. Silence from the left speaks volumes about Boehner.
Fixed.
I hadn’t thought of that one :)
But it’s a real problem waiting to happen. I imagine they could buy a couple different types of policies, crummy ones, not so crummy ones, and good ones...then the more you make the better insurance you could afford.
Do I really believe the ACLU will sit quietly by and watch the $10 an hour employee get bad insurance when working at the same company of the higher paid employee who has a decent plan...that’s a lawsuit waiting to happen.
Like I said, we’ve always paid around $300 per month the company picks up the $900, the plan costs $1200 per month total. I think they do offer other options, but they all look to be around the same cost. The reason our cost has stayed pretty stable for the last few years, is each year deductibles edge up, certain benefits, physical therapy, for instance, is cut back, and out of pockets are more.
But an employee making $10 a hour makes approx. $21,000. 9.5% of that is $1995 per year, or around $166 per month, which would make the total cost of the policy $646 per month (if we’re working on the assumption that employee pays 1/4, company pays 3/4.) Wonder what kind of group insurance you get for $646 per month? I’m sure you can get a policy for that, I just imagine they’d have large deductibles and out of pocket expense.
It truly is, and I see this announcement by the IRS as the beginning of the unraveling.
The fact is that nobody likes this bill, especially now that "low information" voters are finding out what it means to them.
The Supreme Court invalidated the portion of the law that would have served to coerce the states into creating exchanges. Some thirty states have opted out, and the law did not provide funding for a federal exchange.
Oh, and we have the House.
I don't think a federal exchange is even going to happen, and then there will be no mechanism by which the poor will be subsidized to buy a policy.
The Democrats in the Senate then, are placed between a rock and hard place. I think as 2014 approaches we can get them to vote to rescind. It will be suicide if they don't, the way this thing is going.
LOL!! thanks for the chuckle
I worked for an employer once who considered doing this for different reasons. He decided not to after realizing that the full-timers and the temps would get to talking to one another and that the full-timers would quickly figure out that he was paying the temp agency about double per hour what they were making.
I think Obamacare is forcing the same thing in law - mandate what kind of coverage you have to provide, which will be too expensive for low wage earners, so cap the amount the employee can pay. Then you force the company to subsidize more of the cost for everyone, or make progressive contribution rates based on salary. Or the company just gives up, pays $2000 and throws everyone on the government plan.
Don’t follow the law as it is written, follow it as it might be written in the future!
Buying better coverage for higher-paid full time employees than for lower-paid full time employees has long been a violation of the law for larger employers. Obamacare changes the game by penalizing employers if they don’t offer “better” coverage to all full time employees, and also penalizing employers if the employee portion of the premium for “better” coverage is too expensive for lower-paid employees to afford.
The trick in all of this is that the penalties are far lower than the cost to the employer paying all the cost of “better” coverage and many employers will find it more profitable to accept the penalties (for not offering insurance at all, or not subsidizing it enough) or to bear the incremental administrative and efficiency costs of having more part time workers.
The real game is going to be on the Exchanges — what policies are offered, who buys them, etc.
No. Discount plans not allowed. So, companies will crunch the numbers, see which is cheaper insurance or the penalty, and do that.
Bottom line, LOTS of companies will just opt to pay the penalty. Dumping people into the Medicaid pool.
This is a FEATURE not a BUG. The plan is to collapse private insurance in order to get people to WANT Government Single Payor .
>> “Bottom line, LOTS of companies will just opt to pay the penalty.” <<
.
That is what O-bummah and the Rats are counting on; tons of easy money to sponsor more tyranny.
When will the employees wake up and find they are now making a cap salary. 0 has just made the work week 28 hours. A Loss of 120 dollars a week for the average worker @ 10 dollars per hour $6240.00 per year. This now will lower purchases of durable goods by every American worker. Affecting the sales and production of products across the United States.
Now a worker @ 10 dollars an hour @ 28 hrs will earn $1120.00
per month. The standard for food stamps in AR for one person I think is $1200 per month income! So now you have not only penalized the worker and thrown labor back to 1990 levels @ average wage of $7.00 per hr. But will have now added working people to the food stamp roles. I can see where someone should have read the AHCA and saw this coming. All Obama did was to elevate the welfare State.
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