Running a small business is often complicated by the rules and regulations that employers must follow. The Affordable Care Act, or ACA, sets specific guidelines for health care plans that are necessary for employees. Unfortunately, small businesses do not always have the same options and opportunities that are available to larger companies. When a company is uncertain about the best course of action, a professional employer organization, or PEO, offers a realistic solution for small businesses when it comes to ACA requirements.
Rights Under the Affordable Care Act
The ACA focuses on the needs of citizens and their goals for health care. A health care plan must offer protection against emergencies and ensure that children or dependents are covered under the plan. Furthermore, an individual has the right to ask for coverage when it was previously denied by the insurance provider.
Although the ACA does offer some relief to citizens, employers in a small business face challenges associated with the requirements. Since insurance companies have strict legal standards, the cost of coverage for an employer often increases when the policies are renewed.
Along with concerns about the higher costs, a small business does not always have the legal or human resources staff that is required to handle the changes and benefit requirements. ACA requirements are very complicated and the requirements that apply to any specific business is not easy to understand. It is particularly challenging if a business is growing since the number of employees will increase and the requirements will change over time.
The challenges that are associated with ACA requirements create a number of problems for small businesses. Fortunately, realistic solutions are also available to address the complications. A professional employer organization offers expert recommendations and tools that make it easier for small businesses to move forward.
Benefits of a PEO For ACA Requirements
A PEO is a type of outsourcing solution that focuses on human resources, company benefits and payroll requirements. A growing company makes use of the services that are available through PEOs to focus on other tasks and ensure that the company is complying with any new standards, regulations or changes.
The primary benefits associated with PEO services include:
- Cost savings on health insurance
- Lower risks associated with employee information management
- Pooling work forces with other companies for better benefits and employee management practices
- Employer freedom associated with hiring employees
A PEO allows companies to pool certain resources and obtain better deals in association with hiring employees and obtaining appropriate benefits. The risk associated with health insurance costs is limited and other services are available to ensure that the company is complying with any standards.
Finding the Appropriate PEO Services
Working with a PEO helps alleviate some of the concerns and headaches associated with ACA requirements, but that does not mean every PEO is appropriate for the needs of a specific company. Working with a PEO broker offers the opportunity to find the most appropriate solution for the specific goals, concerns and needs of a growing business.
A broker offers a key service that helps with the process: comparing the options for the business owner. Business owners handle several concerns and tasks, so a broker focuses on ensuring that the PEO is appropriate for the goals that are identified and discussed.
Brokers recommend a specific PEO based on the information that was provided before the search. For example, a business owner will provide details about the number of employees in the company, goals for the employee benefits and budgeting details. Since the cost of health insurance is a particular concern, setting a strict budget based on the company’s financial situation and goals for the next few years is essential for finding the right PEO. A broker will ask questions about the services that a company requires and will then compare the options and present the best options for the employer to make a decision.
PEO services provide an opportunity to limit the costs and challenges related to health insurance. As a small business owner, it is important to comply with state and federal regulations. By working with a PEO broker and identifying the best options for the growth of a company, it is possible to find a PEO that is appropriate for the company. It is not necessary to waste time, resources or funds on unnecessary details or complicated strategies. A PEO handles the benefits so that a business owner can focus on growth and meeting company goals.