Pay or Play Penalty – Special Rules for Temporary Staffing Agencies

Health Care Reform Legislative BriefEffective Jan. 1, 2014, the Affordable Care Act (ACA) imposes a penalty on large employers that do not offer minimum essential coverage to “substantially all” full-time employees and dependents. Large employers that do offer coverage may still be liable for a penalty if the coverage is unaffordable or does not provide minimum value.

These rules can be particularly challenging when a temporary staffing agency or professional employer organization (PEO) is involved. The Internal Revenue Service (IRS) has provided some guidance on issues for these entities in regulations issued in early 2013. However, additional guidance would be welcome.

Click HCR Pay or Play Penalties – Special Rules for Temporary Staffing Agencies to read more.