No, it will instead convert all those remaining W-2 employees to 1099 contractors with self-funding of their own benefits in a big hurry!!!
Fine by me. I’m 58 and will get 28k/yr retirement if I quit tomorrow. A McJob for 20-30 hours a week would be just fine. Good luck finding 2 of them.
This is all gonna leave a big mark and I can hardly wait for all the Obama voters to start weeping and wailing and gnashing thier teeth with jaws clenched like their fists!!!
The IRS has rules that preclude doing that unless the employee/contractor works off-site. That is possible for many jobs, but not very useful for many other jobs.
Only if companies fundamentally change their operating structures. The IRS is very quick to look at all 1099 type firms, and if they smell one whiff of a W2 employee hiding under a 1099, the financial ramifications cost cause the company to close it's door.
If the company is in any way, shape or form, close to the 50 employee thresh hold, best bet would be to reduce employees to around 40, and then leave them there until, hopefully, we get a reset.
Employers under 50, are currently exempt from the fines and taxes, but we're grandfathered in to our old plans and have no way to switch to new plans that might be better because of the new structure.
I spent the days after the election trying to explain to the employees in our company what was going to happen, what the mandate meant to them, and why we probably would never grow our company beyond 40 people or so.
Better safe than sorry with the government looking back at the last 12 months to see how many eligible employees you have to see if you qualify for penalties. This is why people are laying off and reducing work now, because come 1/1/14 and the government does the 12 month lookback, no one wants to be more than 49 eligible employees!
There’s no job in a restaurant which can be legally 1099’d besides the piano player in the lounge. Restaurants can use staffing firms but then the staffing firm will have to W2 the personnel, and you’re back where you started, unless the Obamacare bureaucracy will let you break up your personnel into a string of 49-employee-max staffing firms ... which somehow I doubt.