Health Care Law Paperwork Costs Small Businesses Thousands

The Affordable Care Act, which as of next Jan. 1 applies to all companies with 50 or more workers, requires owners to track staffers' hours, absences and how much they spend on health insurance. Some companies are hiring people to take on the extra work and human resources providers and some software developers are experiencing a bump in business. Companies must track workers' hours according to rules created by the IRS to determine whether a business is required to offer health insurance to workers averaging 30 hours a week, and their dependents. Many companies have separate software for payroll, attendance and benefits management and no easy way to combine data from all of them, says John Haslinger, a vice president at ADP Benefits Outsourcing Consulting. Mike Patton's health insurance broker is handling the extra administrative chores for his San Francisco Bay-area flooring company DSB Plus, but he's paying for it through higher premiums — about $25,000 a year.

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