Since its enactment in 2010, the Affordable Care Act (ACA) has generated debate and questions about the law’s impact on third-party staffing arrangements. With the effective date of the ACA’s “pay-or-play” employer mandate just weeks away for many employers, confusion still exists about how “staffing firms” and their clients should prepare. This task is complicated by the fact that numerous staffing operational models exist and call for different approaches. The lack of clear definitions regarding staffing relationships in the IRS final rule1 implementing the employer mandate under Section 4980H of the Code2 (Final Rule) further complicates the issue. Synchronizing the vague definitions in the Final Rule with the varying models for staffing firms is needed to provide a better understanding of how staffing companies and their clients should respond.
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