I’m confused. The timeline for the onset of companies having to pay a fine for not insuring their full time workers is 2014. So why are companies laying off NOW..?
Am I misinformed?
Businesses don’t wait until the last minute when they know things are gonna be effed up down the line.
It’s called planning.
You’re just as uninformed as the rest of and just as confused.
Most employers set their balance sheets and budgets on a 3 to 5 year projection. They may do it now to get ahead of the curve.
The employer portion may not kick in until 2014, but parts of that bill kick in 2013. Corporations are simply accounting for the entire bill now.
Let me take a wild guess here: you’ve never owned or run a business, have you?
If they don’t take positive action now, they will have a lot of “reacting” to do later. If you know you have a big bill coming in 9 months, and don’t start saving for it until the day before it’s due, you are in a bit of a fix. Plus, who knows what other Executive Orders the “Won” will put out - he might decide it looks bad for all the layoffs and cutbacks and decree that they don’t take place...
Now that businesses know ObamaCare’s a certainty, “the law of the land,” they have to plan accordingly and they are.
ObamaCare isn’t the only thing they’re going to be adjusting for either. There will be rising operating costs due a host of other goodies the administration has in store. Taxes, fees, regulations, mandates, etc.
These are very difficult, uncertain times for employers. How do they plan for whatever tomorrow’s executive orders will be?
Sadly, I think a lot of the smaller ones who’ve been waiting for this election’s outcome will simply say “screw it”, shut it down and walk away.... The larger ones will juggle as best they can and try to survive.
Because their full time workers as of 2013 will be the baseline for calculating their penalties. If they were to wait until 2013 when the fines start, they would be hosed.