Is the ACA Healthy for the Economy?
Last week I talked about how the small business economy is moving more than it ever has towards the use of independent contractors rather than full-time employees.
It seems that part of what’s accounting for this shift is the new health care law, the Affordable Care Act. We asked in our SurePayroll Small Business Scorecard® survey in August if small businesses are using independent contractors to stay below the 50 full-time employee level in response to requirements from the ACA.
It plays into the rise of independent contractors, because the law allows them to go out and seek health insurance on the free market. They can get away with not being part of a group plan.
The drawback, of course, is a lack of full-time employment and the stability that comes with it. As an independent contractor, it’s harder to know where the money will come from and whether or not the stream of jobs will dry up.
My fear is that this instability will continue to stymy the growth we want to see on Main St.
Michael Alter, payroll expert with an MBA from Harvard Business School, is a nationally recognized spokesperson providing thought-leadership and sensible advice to help accounting and payroll professionals build deeper more profitable relationships with clients. Alter, President of SurePayroll, writes the Trade Secrets column on INC.com and is frequently published in Bloomberg TV, the Wall Street Journal, and Entrepreneur Magazine.