On average, complying with healthcare regulations costs small businesses more than $15,000 a year, according to a survey by the National Small Business Association (NSBA). Many small businesses don’t have the HR departments or computer systems that large companies have, making it harder to handle the increased load of paperwork and data collection required. Companies that have separate software for payroll, attendance, and benefits management have no easy way to combine the necessary data from all three systems.
What Options Do Business Owners Have?
Business owners have limited options. Maybe they need to hire additional staff to handle the increased healthcare demands, or pay additional fees to their payroll provider to assist with the increase of paperwork. Another option is growing in popularity for businesses of all sizes, which is to partner with a PEO. A professional employer organization (PEO) is a great alternative to hiring additional staff. PEOs can support your current HR staff, or if you do not have HR experts on staff, a PEO can operate as your complete outsourced HR department. Even though some payroll companies will assist with paperwork, they do not offer a full picture of how your compliance with healthcare laws will impact other areas of your business like a PEO does.
What Do the Experts Say?
“It's crunch time for thousands of small business owners who must comply with requirements of the health-care law for the first time.
Companies with 50 to 99 full-time employees must offer affordable insurance to them and their dependents starting Jan. 1. They must also file tax forms by Jan. 31 detailing the cost of their coverage and the names and Social Security numbers of employees and their dependents. While companies of all sizes are subject to the law must file the forms, smaller businesses without big staffs to handle the paperwork may have to hire someone to do it - for hundreds or thousands of dollars.
‘It's probably going to be a big nightmare for a lot of businesses,’ says David Lewis, president of OperationsInc., a human resources provider in Norwalk, Conn.
The enrollment period for buying insurance starts Nov. 1. All the new requirements are likely to take many small business owners by surprise, says Bob Wheeler, a certified public accountant in Los Angeles.” Continue reading this article, “Crunch time at small businesses as health care demands loom,” by Joyce M. Rosenberg on the Big Story website.
Save Money and Comply with Healthcare Laws
If you need help addressing the requirements and increased paperwork associated with growing healthcare regulations, please contact us. We can save you money, and improve your benefits options. We can become your outsourced HR department at a fraction of the investment required to have that expertise on staff. We look forward to assisting you with a full evaluation of the best options for your organization.