Posted on 10/07/2013 9:26:21 AM PDT by Abathar
Hypothetical question that has been rolling around in my head for a while, wondering if it would be legal or not.
Lets say I own business X with 40 employees and need to hire 20 more. I want full time employees but insurance costs will be prohibitive if I do.
Business Y nearby also wants to stay under the 50 employee number of full time employees and is looking to hire, or is too close the the red to take on any more full time healthcare costs being demanded now. I'm looking for the stability of a full time employee with the obvious benefits of avoiding Obamacare.
If we were to make an arrangement that every day at lunch we moved 20 employees back and forth between out companies, at the same hourly wages and doing about the same type of production tasks, would that be illegal?
The real reason this question came about is my wife manages a gas station for a bigger midwest competitor to Walmarts. She is having a really hard time scheduling her employees, and she can only offer about 25 hours per week now. She can't get good help because everyone worth having wants full time work (40 hr. paycheck).
Since this is so prevalent now in employment, I was just wondering if company X and Y couldn't work together for mutual benefit while still offering the full time paycheck and stability.
I smell a business opportunity.
Open a staffing company.
Hire 49 people.
Allow them to work 29 hours maximum each.
Bill local companies.
Sit back and watch the cash flow through, take a cut for billing the services.
How hard can that be?
Heck, if the government doesn’t like you hiring out your workers at your Company A to your Company X, then get your buddy to open Company M and hire out to your Company X.
Then, you open Company N, and hire out to his Company Q.
Scratch each others’ back with staffing agencies.
You have arms length transactions all around. No co-ownership.
People: 49
Hours: 29
Billing $ / Hour: 12
Days / Week: 5
Weeks / Year: 50
Total Revenue: $4,263,000
Owner’s Takehome %: 10%
Owner’s Takehome $: $426,300
IF they are looking for a job & don’t realize that 40 hour weeks are not being used under Obama, they are too stupid for your wife to want to hire them.
This current economy isn’t going to support a person who demands a 40 hour week. They will be lucky to find 2 .. 20 hours a week jobs.
If I own an ice cream shop and the guy across the street owns a sandwich shop, can we agree to share the same workers @ 20 hours each, so the two independent businesses stay under the limit while the workers get guaranteed 40 hour work weeks?
Make it a dry cleaners and a liquor store. Any two unrelated mom-and-pop businesses that only have proximity in common.
-PJ
Absolutely legal and a good way to subvert the tyranny.
if she’s going to switch some to 40 hours a week, that should make scheduling easier, as these people will be taking 15 extra hours a week.
further if there is no federal exchanges set up inthe state she’s in, that means no federal subsidies to these people to pay healthcare costs, which are skyrocketing as planned. if the costs of coverage are more than 8% of these peoples wages they are exempt from the individual mandate and the employer is exempt from the penalty for that employee not being covered by the business. and they will be more than 8% of the person’s wages so it works out.
two separate companies with the same owner counts together towards the 50, ...She didn’t say the same company or same owner.
Obama is five steps ahead of you.
He has the IRS out there investigating companies with common ownership ties. If they find you employing a strategy like this, fines and penalties will be forthcoming.
They will treat all enterprises as being one company.
YES!!!
Hire 200 workers in India and import their work view the internet. Doesn’t matter if it is tax returns, legal document generation, graphic design, computer programming, software testing, etc.
Problem of avoiding Federal requirements for insurance solved.
If India tries to push off those kinds of costs on you, hire contractors from India and let that contracting firm pick up the costs!
That’s just it, broker the employees between two completely different companies with no ties other than perhaps type of work (this will only work with mostly unskilled workers), that way you could shift entire shifts almost between them and avoid the penalties.
I don’t believe it is legal, somewhere in the bowels of Obamacare there will be a regulation.
But certainly, job shifting and outsourcing will occur on a massive scale.
If you have another company which you do not own, with which you have some degree of confidence, it may be possible.
Say the Monday through Wednesday employees are hired by Company A as odd numbered employees, and the Thursday through Saturday employees are hired by Company Aas even numbered employees.
And Company B does the same in reverse.
It is hard to see how that could be done without coordination between the two companies. That could be a conspiracy in restraint of trade (certainly to restrain the trade in insurance premiums).
That would be a problem.
I have one main 1099 “contractor” and another I use sometimes. I put in writing what that means with each check. We actually talked about having him deposit 30% into the business account when he takes his check to the bank. Then I can write him a check to send with the 1099 for the entire amount he deposited. That way he’d have it when he needed it. I agreed to do that but he never went through with it.
If you own a small business under Obama, your sacred duty to The Chief is to close down your selfish, bourgeois scheme, donate your business assets to the IRS for redistribution to the poor, and help your employees get jobs with large, well-connected companies with fully-staffed HR Departments that already operate as an arm of government. :)
The difference is whether the second job is initiated by the employee looking to earn extra money to make up for lost wages, or the employer looking to save from paying healthcare costs.
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