Staffing Companies

Why do Staffing Firms need SyncStream Solutions?

SyncStream has partnered with some of the biggest names in staffing to assist their clients in ACA reporting. ACA compliance for staffing companies can be a challenge. The ACA’s employer shared responsibility (“play or pay”) requirements apply to all “large” employers. The majority of staffing firms qualify as large employers. Large employers are subject to a non-deductible excise tax if at least one full-time employee qualifies for subsidized coverage from a public health insurance exchange.

WHAT CLIENTS SAY:

“In 2021, ESC was in search for an ACA reporting firm so we conducted a thorough vetting process over several months, evaluating firms in this space. After a demonstration of the SyncStream system and numerous conversations with their staff, we concluded they were the company we wanted to be associated with and to refer our clients and vendor partners to with the confidence they would receive the most accurate and professional service. Since 2021, we’ve deepened our appreciation of SyncStream because of the advice they provide us regarding the changing and complicated legal requirements of the Affordable Care Act.”"

Alan Gilbert | Essential StaffCare

Staffing Agencies and ACA Compliance:  The Struggle is Real

 As an industry with a large turnover rate, an unconventional hour-to-dollar ratio, and a majority of employees working part-time, staffing agencies have a lot to take under consideration to determine whether they’re complying with ACA regulations. It’s not an easy task. Fortunately for staffing agencies, paying attention to a few important details can go a long way toward avoiding unwanted ACA penalties.

The Most Important Question: Who is Actually Paying the Employee?

Who does the employee work for? This seems like a simple enough question. And yet, when it comes to staffing agencies, it’s not always that cut and dry. The determining factor behind who an employee actually works for is the salary payment itself; who is directly paying the employee, the staffing agency or the employer? The answer to this question is crucial, as it can determine whether you’re on the hook for ACA compliance.

Staffing Agency Directly Paying Employee:

Particularly in the service and manual labor industries, the staffing agency often pays the employee directly for the time worked in a given role. This means they are on your payroll and considered your employee. Should this be the case, and you have 50 or more full-time equivalent employees, you are an applicable large employer (ALE). Under the ACA, ALEs have to offer benefits for all employees working an average of 30 hours per week or more. This holds true even if an employee is working part-time at multiple locations.

Staffing Agency as a Placement Company:

 If you help an employee get hired as either a seasonal, part-time, or full-time employee, and you receive a commission for your efforts, then you are not responsible for offering benefits to the employee. In this scenario, the employer is paying the placed employee directly.

WHAT CLIENTS SAY:

"CBIZ has explored other technology products and services available for ACA reporting, as any good consumer would. We have found none that meet the accuracy, ease of use, auditability, and access that SyncStream and their product provide. We look forward to the continuation of that partnership for years to come."

Lori Fredrick | CBIZ Employee Benefits ACA Pratice Leader