$2000 per employee in penalties due to ObamaCare: how are businesses offsetting the cost?
The Patient Protection and Affordable Care Act (PPACA), known as ObamaCare by its critics, may be anything but affordable to the employer, but there is a way to offset the cost without laying off staff or increasing prices.
ObamaCare, like it or not, has become an inevitability in the business world, and will be implementing its first penalties as early as 2015. Businesses of all shapes and sizes are rushing to figure out what the cost will be and how to keep it from breaking the bank.
How can a company expect to grow, or even have the ability to hire and maintain the staff they need for productivity, when they are expected to pay the high premiums?
The cost averages to about 9-10% of the employee’s income or the company will face a $2000 penalty per employee.
Offset ObamaCare costs through improved time management, as well as inventory and employee monitoring.
Curb Inventory Damage and Theft
Shrinkage of one’s inventory is always an issue, and on average runs at a loss of about 0.5 to 4% of a company’s sales. Much of this is due to wasteful practices and accidental damage to inventory. Implementing simple procedures will not only help you decrease shrinkage it will insure safety. Surprisingly, one more place we find shrinkage as it pertains to inventory is employee theft. In many cases making your hiring process more rigorous, and investing in a security camera can offset this by at least half.
Curb Time Theft
Buddy punching, not punching out for breaks, and unapproved overtime can cost a company thousands. The American Payroll Association shows a Human Calculation Error Rate between 1-8% of total payroll, in companies that use traditional timecards, and the average weekly time theft (long lunches & breaks, tardiness, early leave) is four and a half hours (270 minutes) per employee, per week. By using a simple calculation you can see how much this can hurt your business.
Let’s say you have 55 employees working for about $13/hour, using a modest error rate of 1% and assuming your employees only miss-punch or buddy punch about 100 minutes per week. You are looking at a loss of $62,586 per year.
Needless to say, even with the conservative numbers used, switching to a more up to date time and attendance system can benefit your company immensely in the fight to offset company costs.
One of the best solutions on the market is the Count Me In Timecard Monitor system; which uses a biometrics to clock in employees and integrates with the most popular accounting software on the market (Quickbooks) as an official member of the Intuit Developer Network in order to make timecard monitoring and payroll simple and efficient.
By using simple techniques such as these to help with budgeting you can ease into the brave new Obama care world with confidence. Just remember: when the government gives you lemons, make sure you have enough sugar to make lemonade.