ADP releases study on employee benefits
Posted on February 4, 2013 | No Comments
The Affordable Care Act (ACA) will significantly impact how employers handle employee benefits, according to a study released today by ADP Research Institute. The intent of the paper is to provide data and insights regarding how employers can begin to take action to manage the impact of the ACA’s shared responsibility requirements on financial and human capital resources. The ADP study indicates that most of the impact will revolve around the part-time workforce. The data shows that, in 2012, 23% of all employee positions were classified as part-time, but only 15% of these were eligible for benefits. Roughly two-thirds of the part-time workforce was classified as single, versus less than 50% of full-time employees. When eligible part-time employees were offered health benefits, only 53% elected coverage versus 77% of full-time employees. These and other factors are indicators of whether the employer may be subject to potential penalties once the ACA’s shared responsibility requirements take effect and how much exposure the employer might have. Because of this, composition of the workforce may shift to accommodate the influences of the ACA, according to the report. With information provided in the report, larger employers can begin determining their exposure and considering options.