How small companies are misunderstanding the employer mandate

01/7/2013 | Forbes

Some business advocates are wary of the potential impact of the employer mandate provision in the federal health care law, but the truth is that much of the cost of insurance might come out of workers' wages, write Jonathan Kolstad, Mark Pauly and Robert Town of the University of Pennsylvania. Some employers have discussed using part-time employees to avoid the mandate, but this might not be the best course of action. "[B]etter to either pay for the insurance (and cut wages) or pay the penalty (and keep wages up), unless you are very close to the 50-worker threshold to begin with," they write.

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