Q: I lease my employees through Cardinal. Is the employee count based on those that I supervise or Cardinal’s as a whole?
A: Good question. Your employee count is based on the employees you supervise.
The first link is to the Internal Revenue Service’s explanation of employee leasing benefits plans. According to the IRS leased employees are treated as common law employees and may participate in retirement benefit plans like a 401(k). Additionally in the second and third link client sizes are used to determine your employee count under the Affordable Care Act as well as access to benefits like a Small Business Tax Credit. Though that credit may not apply in your individual instance it is instructive how the Affordable Care Act is applied to leased situations.
IRS Link:
http://www.irs.gov/pub/irs-pdf/p7003.pdf
http://www.law.cornell.edu/uscode/text/26/45R?quicktabs_8=3#quicktabs-8
http://www.law.cornell.edu/uscode/text/26/414
National Association of Professional Employer Organizations notes the Affordable Care Act intent was to provide businesses utilizing leasing arraignments the same transparency for benefits as any other business.
http://www.napeo.org/docs/PPACA%2045R%20credit.pdf
Q: If I lease my employee through Cardinal can I get my own health insurance plan just for my employees?
A: Yes. Under ORS 743.522, health insurance groups include “The leased workers of a client employer” and the statute later goes on to define a leased worker and a client employer. In the same webpage in 743.533 it states how leasing companies may offer health insurance. Since Cardinal does not have one single plan for everyone each leased client may create their own.
Oregon Revised Statues Link:
http://www.leg.state.or.us/ors/743.html
Q: I have temporary employees from Cardinal. Do I or does Cardinal pay a penalty under Obamacare?
A: Temporary employees are treated differently under the Affordable Care Act. Cardinal would be responsible to pay any penalty/tax that is due.
Disclaimer: Arin Carmack, VP of Risk Management at Cardinal Services, answers these questions. He is not an attorney. These answers are not legal advice and should not be treated as such.