Staffing Firms Should Generally Qualify as Common Law Employers Under ACA

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Bloomberg BNA Alden J. Bianchi; Edward A. Lenz

The vast majority of staffing firms likely meet the criteria for common law employer status under the Affordable Care Act, according to a new analysis by staffing law experts in the latest BloombergBNA Tax Management Memorandum. Most staffing firms should meet the criteria because they not only are the employers of record for payment of wages and benefits and for withholding and paying employment taxes, but also because they generally recruit, screen, and hire these employees; establish employment policies governing employees’ job performance and conduct; have the right to terminate or reassign employees; and retain the right to control how employees perform their work. The American Staffing Association model contract was recently updated to include ACA-specific provisions, including language expressly stating the staffing firm’s right to control.

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